During Friday’s trading session, the shares of a Navratna public sector enterprise and a leading turnkey construction company under the Ministry of Railways) jumped 2.5 percent on BSE, after securing an order worth Rs. 872 crores for a project floated by Rail Vikas Nigam Limited (RVNL).
Price Movement
With a market cap of Rs. 14,700.2 crores, the shares of Ircon International Limited hit an intraday high at Rs. 163.7, up by nearly 2.5 percent, compared to its previous closing price of Rs. 159.75. The stock has delivered negative returns of around 29 percent in one year, while about 10 percent of positive returns in one month.
What’s the News
Ircon International Limited, in a joint venture with SSNR Projects Private Limited (IRCON-SSNR JV) with a shareholding of 70 percent (IRCON) and 30 percent (SSNR), has received a Letter of Award (LOA) from RVNL for a new project. The project is scheduled for completion within 40 months, with an additional 6-month DLP.
According to the latest exchange filings, the project is valued at ~Rs. 872.7 crores. It involves the construction of Tunnel T1 from Chainage Km 33+160 to Km 34+400 and Tunnel T2 from Chainage Km 57+400 to Km 66+040, along with ballastless track installation and formation-related works at the tunnel approaches.
This construction is part of the electrified new broad-gauge (BG) railway line between Mangliyagaon (Indore) and Budni stations (198 km), under the Ratlam and Bhopal divisions of Western Railway and West Central Railway, respectively, in Madhya Pradesh. IRCON secured this project as part of the IRCON-SSNR JV, with IRCON holding a 70 percent share. As a result, IRCON’s portion of the order amounts to Rs. 610.8 crores.
Also read: Semiconductor stock jumps 5% after it plans to launch India’s First SiC semiconductor production
Order Book
As of December 2024, the company’s order book stood at Rs. 21,939 crores. The Railways segment has made the largest contribution, accounting for 78 percent of the total, or Rs. 17,075 crores. The Highways segment has contributed 22 percent, amounting to Rs. 4,775 crores, while the remaining Rs. 89 crores come from other segments.
Financial Performance
Ircon International reported a decline in its revenue from operations, showing a year-on-year decrease of around 11 percent from Rs. 2,930 crores in Q3 FY24 to Rs. 2,613 crores in Q3 FY25.
Similarly, its net profit decreased during the same period from Rs. 245 crores to Rs. 86 crores, representing a fall of nearly 65 percent YoY. Between FY21 and FY24, the company’s revenue from operations grew at a CAGR of 32 percent, while net profit surged at a CAGR of nearly 33 percent.
About the company
Ircon International Limited commenced its business in 1976 as a railway construction company and diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
