This small-cap railway stock engaged in engineering and construction, primarily in transport infrastructure projects including railways, highways, bridges, and buildings in India and abroad, jumped 5 percent after securing an order worth Rs.458 crore from North Eastern Electric Power Corporation Limited
With a market capitalization of Rs. 14,827.23 crores, the share of Ircon International Limited has reached an intraday high of Rs. 160.95 per equity share, rising nearly 5.20 percent from its previous day’s close price of Rs. 153. Since then, the stock has retreated and is currently trading at Rs. 157.65 per equity share.
Order Details
Ircon International Limited has received a Letter of Acceptance from North Eastern Electric Power Corporation Limited for civil construction work in Arunachal Pradesh. The project, valued at over Rs. 458.14 crore, includes key structures like the powerhouse, tunnels, and intake systems for the Tato-I Hydro Electric Project. This domestic contract is to be completed within 45 months.
As of 31st December 2024, the company’s order book is valued at around Rs. 21,939 crores. Of this, 78 percent comes from railways, while 22 percent is through highways. The majority of the orders, about 90 percent, are domestic, with the remaining 10 percent from international projects.
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Management Guidance
The company expects to earn around Rs. 10,000 crore in revenue for the financial year 2026. However, due to increased competition, profit margins are likely to drop to about 5 percent. For the financial year 2025, the company expects new orders worth Rs. 2,700 crore, with an additional Rs. 1,000 to Rs. 1,200 crore possibly coming in by the year-end.
The company expects its standalone revenue for FY25 to be between Rs. 10,000 and Rs. 11,000 crore. However, profit margins are likely to decrease to around 6 percent, compared to 7.12 percent in the previous year.
Recent quarter results
Ircon International Limited’s revenue has decreased from Rs. 2,930 crore in Q3 FY24 to Rs. 2,613 crore in Q3 FY25, which has dropped by 10.82 percent. The net profit has also decreased by 64.90 percent from Rs. 245 crore in Q3 FY24 to Rs. 86 crore in Q3 FY25.
Written By – Nikhil Naik
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