Share Price of Ircon International Jumps 2% Amid MoU with Patel Engineering

Ircon International’s Share Price Jumps 2% Amid Market Selloff Following MoU Announcement

In a market experiencing sharp selling pressure, with frontline indices down between 0.34% to 0.48%, Ircon International’s share price has jumped by about 2%. The rally follows the announcement that the company has entered into a Memorandum of Understanding (MoU) with Patel Engineering Limited on October 16, 2024. This partnership is set to explore and execute mutually beneficial infrastructure projects across India and international markets, boosting investor confidence.

Strong Order Book and Segmental Breakdown

Ircon International has maintained a robust order book of Rs 26,034 crore as of June 30, 2024. Breaking it down:

• 78.4% of the order book is focused on railways,
• 21.2% is dedicated to highways, and
• 0.4% falls under other infrastructure projects.

From a geographical perspective, 90.7% of the order book is derived from domestic projects, while the remaining 9.3% comes from international ventures.

Q1FY25 Financial Performance

For the first quarter of FY25, Ircon International reported:

• Revenue: Rs 2,385 crore,
• PAT: Rs 224 crore, a 20% increase year-on-year,
• Core EBITDA: Rs 259 crore, compared to Rs 251 crore in Q1 FY24.

Earnings per share (EPS) rose to Rs 2.38 in Q1 FY25, up from Rs 1.99 in the same quarter last year, showcasing strong profitability on a face value of Rs 2 per share.

Stock Performance Overview

Despite the volatility, Ircon’s share price has delivered consistent growth:

• Year-to-date (YTD): The stock is up by 32.7%.
• October performance: The share price has seen a slight dip of 0.42% so far.

Having begun as a railway construction company in 1976, Ircon International has grown into a public sector unit (PSU) specializing in large, complex infrastructure projects across various sectors, with a focus on railways and highways.