IRCON International shares zoom 8% after Rs 1,096 crore Meghalaya project win

Synopsis

Ircon share Price: The project involves constructing a new Secretariat Complex, including campus infrastructure, in New Shillong City. IRCON holds a 26% stake in the joint venture, valued at Rs 285 crore, while BRC holds the remaining 74%. The contract is set to be completed within 36 months.

Shares of state-owned IRCON International zoomed 8% in early trade to their day’s high of Rs 149.45 on the BSE on Tuesday after the company, in a joint venture with Badri Rai and Company, secured an Engineering, Procurement, and Construction (EPC) contract worth Rs 1,096.17 crore from the Directorate of Urban Affairs, Government of Meghalaya.

The project involves the construction of a new Secretariat Complex, including campus infrastructure, in New Shillong City. IRCON holds a 26% share in the joint venture, amounting to Rs 285 crore, while BRC holds the remaining 74%. The contract has a completion timeline of 36 months.

"...it is to inform that IRCON has been awarded an EPC contract floated by Directorate of Urban Affairs, Government of Meghalaya, Raitong Building, Secretariat Hills, Shillong, Meghalaya, India in JV {Badri Rai and Company (BRC) (74%) -IRCON (26%) JV} LoA by Directorate of Urban Affairs, Government of Meghalaya, Raitong Building, Secretariat Hills, Shillong, Meghalaya, India," IRCON International said in a regulatory filing.

In the third quarter of FY25, the company reported a 65% drop in net profit to Rs 86 crore for the October-December quarter, compared to Rs 244 crore in the same period a year ago.

Revenue from operations in the third quarter ended December declined by 10% to Rs 2,612.86 crore from Rs 2,929.54 crore in the corresponding quarter of the previous fiscal. EBITDA fell to Rs 218.3 crore from Rs 378.1 crore in Q3FY24, with an EBITDA margin of 8.1%.

As of December 31, 2024, IRCON International's total order book stood at Rs 21,939 crore.

Shares of IRCON International ended at Rs 138.25 on Monday, down by 1.53% on the BSE. The stock has fallen 36.27% in the last one year, 39.59% in the past three months, and 6.72% in the last one week.

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