Shares of IRCON International Ltd. experienced a notable increase of over 4% on Tuesday, reaching an intraday high of ₹157.25, after the company secured a significant contract valued at ₹127.8 crore from the North Western Railway’s S&T (Construction) division.
Project Overview
The awarded contract encompasses the design, manufacture, supply, installation, testing, and commissioning of a microprocessor-based Electronic Interlocking (EI) system, complete with inbuilt block instruments, across 20 stations in the Ajmer Division. The project also includes the implementation of Automatic Block Signalling and associated indoor and outdoor works related to signalling and telecom systems. The execution timeline for this project is set at 24 months from the date of the Letter of Acceptance.
Market Response
Following the announcement, IRCON’s stock opened at ₹154.85, marking a 3.5% increase from the previous close of ₹149.65. By 10:00 AM, the shares were trading at ₹156.31 on the National Stock Exchange, reflecting a 4.5% rise. In contrast, the benchmark NSE Nifty50 index was up by 2.18% during the same period.
Financial Snapshot
Despite the positive market reaction, IRCON’s financial performance in the December 2024 quarter showed a decline. The company reported a consolidated revenue of ₹2,447.52 crore, down from ₹2,612.86 crore in the same quarter the previous year. Net profit also decreased by over 58%, falling to ₹86.1 crore from ₹205.92 crore.
Company Profile
Established in 1976, IRCON International is a Navratna public-sector enterprise specializing in engineering and construction, particularly in the railway and highway sectors. The company’s operations extend beyond India, with projects in countries such as Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka.
This recent contract win reinforces IRCON’s position as a key player in railway infrastructure development and is expected to contribute positively to its project portfolio and financial performance in the coming years.
