Ircon International reports 19.6% rise in Q1 PAT, operating revenue falls 17%

Core earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 3.26% YoY to ₹259.26 crore while core EBITDA margins rose 226 basis points (bps) 11.34%. Net profit margin rose 277 bps to 9.39% during the quarter.

Ircon International said that total order book as on June 30, 2024 stood at ₹26,034 crore. Of this, Railways accounted for ₹20,420 crore and Highways accounted for ₹5,531 crore worth of orders.

In its outlook, the company pointed out that capital expenditure has been increased by 11.11% to ₹11.11 lakh crore. “Capital outlay of ₹2.52 lakh crore and ₹2.72 lakh crore has been provided for Railways and Road & Highways respectively, which is the highest ever outlay,” it said.

Ircon also highlighted that the government has announced implementation of three major railway corridors programmes under the PM Gati Sakti to improve logistics efficiency and reduce cost. The company believes that government initiatives are providing tailwinds to the infrastructure sector and it expects to get benefited from the same.

Ircon International is a Navratna, Public Sector Enterprise and a turnkey construction company in the public sector. Its core competence lies in the railways and highways sector. The company reports to the Ministry of Railways. The company has widespread operations in several states in India and countries like Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar and Sri Lanka. It has completed more than 128 projects in 25 countries across the globe and 401 projects in various states in India.

Shares of the firm have gained nearly 52% since the beginning of the year. The stock has risen nearly 149% in the last one year.