IRCON Intl gains on completion of Chhattisgarh project

IRCON International rose 1.21% to Rs 92.15 after the company announced the completion of 30 km Korichhapar-Dharamjaigarh section in Chhattisgarh.

IRCON International announced opening the 30 km section between Korichhapar to Dharamjaigarh within the targeted date i.e., 31.12.2020. A trial run was carried on 31 December 2020. The cost of this line is approximately Rs 325 crore and the work is executed by Ircon International under an SPV named Chhattisgarh East Railway. South Eastern Coalfields, IRCON and Chhattisgarh Government are shareholders for the Chhattisgarh East Railway.

A section of 44 km length between Kharsia to Korichhaparis already made operational by IRCON in October 2019. Now, with the completion of Korichhapar-Dharamjaigarh, the complete section of 74 km between Kharsia-Dharamjaigar his functional. Commencement of this section will help in evacuation of coal from North Chhattisgarh Area. This 74 km is the first stretch being commissioned under the PPP model.

Following this development, the goods train can reach upto Durgapur, Baroud and Chhaal mines of South Eastern Coalfields.

On a consolidated basis, IRCON's net profit rose 1.5% to Rs 84.07 crore on a 15.9% fall in net sales to Rs 1,040.41 crore in Q2 FY21 over Q2 FY20.

IRCON International is an engineering and construction, specialized in transport infrastructure and is wholly owned by the Ministry of Railways. As on 31 December 2020, the Government of India held 89.18% stake in IRCON International.

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