Ircon International slips 6% on weak Q2 results; PAT down 18%, rev down 19%

Ircon International's revenue from operations fell 19.3 per cent for the quarter under review to Rs 2,448 crore as compared to Rs 3,033 crore a year ago

Ircon International shares declined 5.9 per cent on Friday and logged an intraday low at Rs 202.3 per share on BSE. The stock fell after the company reported weak Q2FY25.

 

Around 1 PM, Ircon International shares were down 3.77 per cent at Rs 207 per share on BSE. In comparison, the BSE Sensex was down 0.16 per cent at 79,415.47. The market capitalisation of the company stood at Rs 19,468.68 crore. The 52-week high of the stock was at Rs 351.65 per share on BSE and 52-week low of the stock was at Rs 150.5 per share.

 

On Thursday, after market hours, Ircon International reported a 18 per cent fall in consolidated net profit to Rs 206 crore in Q2 as compared to Rs 251 crore a year ago. 

 

The revenue from operations fell 19.3 per cent for the quarter under review to Rs 2,448 crore as compared to Rs 3,033 crore a year ago. 

 

The Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the second quarter stood at Rs 201 crore as compared to Rs 262 crore a year ago which implies a decline of 23 per cent. 

 

The Ebitda margins of the company for the quarter under review stood at 8.2 per cent as compared to 8.6 per cent.

 

 As per its filing, the company's total order book as on September 30, 2024 stood at Rs 24,253 crore.

 

The company in its statement said India is on a path to expand its transportation infrastructure, with a significant focus on roadways, railways, and airports. The government is driving infrastructure development through strategic initiatives, such as PM Gati Shakti, the National Logistics Policy, Bharatmala and Sagarmala Projects, Pradhan Mantri Awas Yojana, and the Smart Cities Mission. 

 

Under PM Gati Shakti, three major railway corridor programs have been announced to enhance logistics efficiency and reduce operational costs. Additionally, urban transformation initiatives like Metro Rail and NaMo Bharat are set to boost public transit infrastructure. 

 

It added: These government initiatives are creating favorable conditions for growth in the infrastructure sector, which the company is well-positioned to capitalize on.

 

In the past one year, Ircon International shares have gained 39.1 per cent against Sensex's rise of 22.4 per cent.