Ircon International JV wins ₹1198 crore project, shares rise over 2%
Upstox
2 min read • Updated: April 29, 2024, 11:18 AM
Summary
Ircon International said the construction of the Kottavalasa-Koraput doubling project would extend from Shivalingapuram station to Borraguhalu station. The project is to be executed in 1,260 days.
Shares of Ircon International rose over 2% on Monday after the company announced that its joint venture with Dineshchandra R Agrawal Infracon (DRA) named Ircon-DRA JV has received the letter of award (LOA) for the construction of the Kottavalasa-Koraput doubling project. The order size stands at ₹1198.09 crore, it said.
The construction would extend from Shivalingapuram station to Borraguhalu station, the company said. The project is to be executed in 1,260 days.
Ircon International is a public sector enterprise involved in railway construction including ballastless tracks, electrification, tunneling, signal and telecommunication as well as leasing of locos, construction of roads, highways, commercial, industrial and residential buildings among others. The firm operates in India, Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar and Sri Lanka.
During the third quarter of fiscal year 2024, the company’s consolidated total income jumped 24.4% year-on-year (YoY) to ₹3,011.90 crore. Revenue from operations increased 22.9% to ₹2,884.2 crore during the quarter.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 63.2% YoY to ₹378.1 crore while net profit rose 28.8% to ₹244.7 crore. For the nine months ending December 31, 2023, the company’s net profit increased by 34.2% to ₹682.9 crore.
The company’s total order book as of December 31, 2023, stood at ₹29,436.1 crore, it said. Of this, the railways’ order book stood at ₹21,282 crore while the highways order book stood at ₹6,102.2 crore.
The company pointed out that the government has announced the implementation of three major railway corridor programmes under PM Gati Sakti to improve logistics efficiency, reduce costs and promote urban transformation via metro rail and NaMo Bharat. These initiatives are providing tailwinds to the infrastructure sector, it said while noting that the firm expects to benefit from these developments.
Shares of the company gained over 47% since the beginning of the year. The stock has gained over 198% in the last one year.