What’s inside:
Ircon International has secured a ₹224.5 crore contract for various railway works, which has impacted its stock performance.
Government-owned Ircon International Limited has recently bagged a contract worth ₹224.5 crore from the North East Frontier Railway. This contract relates to important works in civil, electrical, mechanical, and signal-telecom areas.
The contract includes upgrading maintenance infrastructure for the Vande Bharat Express at the New Jalpaiguri coaching complex. Additionally, a new GE loco shed will be built in Siliguri, capable of accommodating 250 GE locos.
This project aims to develop next-generation freight maintenance facilities in the Katihar division. The entire work is expected to be completed within 18 months, and it is confirmed that the order is entirely domestic, involving no related party transactions.
Despite this new contract, Ircon’s shares fell nearly 2% to below ₹170. The trading range for the shares was between ₹173.20 and ₹168.30. Comparatively, the share was at its highest at ₹237.60 in December 2024.
In the first quarter of FY 2025-26, Ircon reported a significant drop in profits by 26.5%, amounting to ₹164.5 crore. However, the company maintains a strong order book, which totals ₹20,973 crore, with a substantial portion dedicated to railway projects.
Summary:
- Ircon International has received a ₹224.5 crore contract.
- The contract involves key railway works over 18 months.
- Stock prices have dropped following this announcement.
- Profits have significantly decreased in the last quarter.
- The company’s order book remains strong despite financial pressures.