Ircon International surges 8% on healthy Q1 results, order book

As on June 30, 2023, Ircon total order book position stood at Rs 32,486 crore, of which orders worth of Rs 23,613 crore were from railways.

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Shares of Ircon International hit a new high at Rs 107.60, surging 8 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market after the company reported a good set of numbers for June quarter, with a strong order book position. In comparison, the S&P BSE Sensex was down 0.41 per cent at 65,573 at 09:42 AM.

For the April-June quarter (Q1FY24), Ircon reported 29.6 per cent year-on-year (YoY) jump in consolidated profit after tax at Rs 187 crore as against Rs 145 crore in Q1FY24. Revenue from operations grew 32.4 per cent to Rs 2,717 crore from Rs 2,002 crore in a year ago quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, however, stood at 11.15 per cent as against 11.51 per cent in Q1FY23.

As on June 30, 2023, Ircon total order book position stood at Rs 32,486 crore. Of these, orders worth Rs 23,613 crore were of railways, Rs 6,906 crore of highways and Rs 1,967 crore from the other segments.

Ircon is leading turnkey construction company in the public sector (under Ministry of Railways). The company has executed projects operated in the areas of Railway construction including ballast less track, electrification, tunneling, signal & telecommunication as well as leasing of locos, construction of roads, highways, commercial, industrial & residential buildings and complexes, airport runway and hangars, metro and mass rapid transit system, etc.

In the recent Budget 2023, Finance Minister Nirmala Sitharaman announced a record allocation of Rs 2.4 trillion for Indian Railways which demonstrates the government's ongoing focus on massive infrastructure expansion. Recently, the Prime Minister, laid the foundation stone for the redevelopment of 508 railway stations across India at a cost of more than Rs 24,470 crore.

Several government initiatives such as the PM Gati Shakti, National Logistics Policy Bharatmala Project, Sagarmala Project, Pradhan Mantri Awas Yojana, and Smart Cities Mission are driving investments and creating opportunities for infrastructure development. The sector has enormous room for growth and provides a challenging environment in which the company will stand firm and seize opportunities for expanding its operations, Ircon said in industry outlook.