Ircon international shares rally over 3% on bagging ₹631-crore road project in Mizoram

Ircon International has been awarded a letter of award (LOA) for the construction of a twin-tube tunnel of 2.5 km and 2.1 km on Sairang-Phaibawk section of NH-6 in Mizoram on the engineering, procurement and construction mode.

Shares of IRCON International Ltd gained more than 3% to touch the day's high at ₹223.6 apiece on the NSE on Monday after the railway PSU firm received a road project order worth ₹630.6 crore from the National Highways and Infrastructure Development Corporation Ltd (NHIDCL).

IRCON International, an engineering and construction public sector undertaking of the Ministry of Railways, specialises in transport infrastructure. NHIDCL is a public sector undertaking under the Ministry of Road Transport and Highways.

The railway PSU has received the letter of award (LOA) for the construction of a twin-tube tunnel of 2.5 km and 2.1 km on Sairang-Phaibawk section of NH-6 in Mizoram on the engineering, procurement and construction (EPC) mode at a quoted bid price of ₹630.66 crore, IRCON informed the stock exchanges in a filing.

The contract period of this project is 36 months.

In its financial results announced for Q3FY24, IRCON International posted a 29% jump in its consolidated net profit at ₹244 crore, against ₹190 crore in the corresponding period a year ago.

The state-run engineering and construction firm saw its revenue from operations in Q3 rise by 23% to ₹2,884 crore over ₹2,346 crore in the same period of FY23.

Its total income stood at ₹3,011.9 crore in Q3FY24 over ₹2,421.9 crore in the year-ago period, registering a rise of 24.4% year-on-year (YoY). Earnings per share (EPS) came to ₹2.60 per equity share of the face value of ₹2 per share.

IRCON International also announced an interim dividend of ₹1.8 per equity share.

IRCON International's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 63.2% to ₹378.1 crore in Q3FY24 as against ₹231.7 crore in Q3FY23.

Shares of IRCON International Ltd were trading 0.2% lower at ₹216.15 apiece on the NSE at 15:15 pm.