IRCON International shares surge after JV wins order worth Rs 1,096 crore

IRCON International informed exchanges that its joint venture (JV) with Badri Rai and Company won a contract worth ₹1,096 crore from Directorate of Urban Affairs, government of Meghalaya for construction of new secretariat complex along with a campus infrastructure on engineering, procurement and construction (EPC) basis in New Shillong City, Meghalaya.

The contract must be completed within 36 months, the company said in an exchange filing.

IRCON International holds 26% in the joint venture worth ₹285 crore while Badri Rai and Company holds the remaining 74% stake.

IRCON International shares have dropped 60% from its 52-week high of ₹351.60 it touched in July last year.

The stock came under selling pressure after it reported a sharp decline in December-quarter profit. The company reported a net profit of ₹86 crore in the third quarter of the current financial year, marking a decline of 65% from ₹245 crore in the same period last year.

Its revenue from operations declined 12% to ₹2,612.86 crore from ₹2,929.54 crore in the year-ago period.

As of 9:32 am, IRCON International shares traded 6.99% higher at ₹147.83 outperforming the NIFTY50 index which was up nearly 1%.