Ircon International gains over 3% after JV wins ₹751 crore order from RVNL

Shares of Ircon International (Indian Railway Construction International Limited) surged more than 3% on Friday after the Ircon-Paras-PCM joint venture bagged a project worth ₹750.8 crore.

The stock jumped 3.1% to ₹288.5 on the National Stock Exchange (NSE). It gained 3.2% to ₹288.6 on the BSE.

In an exchange filing, Ircon International on Thursday announced that its joint venture with Paras Railtech Private Limited and Strescon Overseas Ventures has secured a project worth ₹750.8 crore from Rail Vikas Nigam Limited (RVNL).

The project is for "design, supply, installation, testing and commissioning of broad gauge ballastless track (BLT), supply of ballast and installation of track (excluding supply of rails and track sleepers) between chainage 6+015 (FLS) to 125+200 (FLS) in connection with New BG line between Rishikesh and Karanprayag (125km) in the state of Uttarakhand, India".

The regulatory filing stated that the stipulated period for completing the work is 42 months.

The stock has gained 68% since the beginning of the year and has risen 246% in the past year.

Ircon International posted a 15.1% year-on-year (YoY) increase in its net profit to ₹285.6 crore during the fourth quarter of the financial year 2023-24. Total revenue surged 0.6% to ₹3,796.59 crore in Q4 FY24 from ₹3,773.97 crore in the year-ago quarter.

The company's order book stood at ₹27,208 crore as of March 31, 2024.