Shillong: Ircon International Ltd. has secured an Engineering, Procurement, and Construction (EPC) contract worth Rs 1,096 crore for the construction of a new secretariat complex in Shillong from the Meghalaya government.
Shares of IRCON International Ltd climbed 9 percent in Tuesday’s trade after the railway firm bagged an EPC contract worth from the Directorate of Urban Affairs of the Meghalaya government. The stock climbed 8.82 percent to hit a high of Rs 150.45 on BSE, slashing its year-to-date losses to 33.08 percent.
The announcement marked another addition to IRCON’s expanding portfolio in infrastructure development, such as railway construction, roads, buildings, and metro rail works.
The project is a joint venture with Badri Rai and Company (BRC), with IRCON holding a 26% share and BRC holding a 74% share.
IRCON International is a Navratna, public sector enterprise and a leading turnkey construction company in the public sector.
Its core competence lies in railways and highways. IRCON has widespread operations in several states in India and other countries (Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar and Sri Lanka).
The order, which comprises campus infrastructure on an engineering, procurement and construction basis, is expected to be executed within three years.
The total contract value is Rs 1,096.17 crore, with IRCON’s share being Rs 285 crore.
The company’s net profit registered a steep decline of 65 percent to Rs 86 crore, down from the Rs 244.70 crore in the corresponding period last year. Revenue also declined 10 percent on year to Rs 2,612.86 crore, as compared to Rs 2,929.54 crore in the year-ago period.
ALSO READ: Meghalaya’s first scientific coal mining block inaugurated in East Jaintia Hills
IRCON has 11 subsidiaries and 7 joint venture companies.
The company is expected to clock a revenue of Rs 10,000-Rs 11,000 crore in FY25. The company expects its March quarter results to be decent.
