IRCON International’s stock experienced a significant boost, soaring 9% to reach an impressive intra-day high of Rs 150.40 on the National Stock Exchange. This surge in share value was triggered by the announcement of a substantial contract worth nearly Rs 1,100 crore from the Government of Meghalaya, igniting investor interest and optimism.
Major Contract Win for IRCON International
The awarded contract is expected to be completed within a 36-month timeframe. According to a recent exchange filing, IRCON has secured an EPC contract through a joint venture with Badri Rai and Company (BRC), where IRCON holds a 26% stake. The contract was issued by the Directorate of Urban Affairs, based in Shillong, Meghalaya.
Financial Performance in Q3
Despite this positive development, IRCON International reported a 65% decline in its consolidated net profit for the third quarter of the current financial year, totaling Rs 86 crore. This marks a sharp drop compared to Rs 244.70 crore from the same quarter last year. Additionally, the company’s revenue from operations decreased by 10% year-on-year, amounting to Rs 2,612.86 crore for the quarter ending December 2024, down from Rs 2,929.54 crore in the previous year.
- Net Profit: Rs 86 crore (down 65% YoY)
- Revenue: Rs 2,612.86 crore (down 10% YoY)
- Total Order Book: Rs 21,939 crore
Stock Performance Overview
In the past five trading sessions, IRCON International’s share price has increased by 0.14%. However, over the past month, the stock has dipped by 3.4%, and it has seen a more considerable 36% decline over the last six months. Over the past year, investors have experienced a 32% reduction in their wealth due to the stock’s overall performance.
Market Outlook
As IRCON International continues to navigate these financial challenges, the recent contract win may provide a much-needed boost. Investors are keenly watching how the company’s strategic moves will unfold in the coming months, especially in light of its substantial order book.
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