Ircon International Bags Orders Worth Over Rs 1,110 Crore From Mumbai Metro Authority
The first order is worth Rs 471 crore and is for "package 2 of Line-5", whereas the second order is worth Rs 642 crore and is for "package-2 of Line 6" of Mumbai Metro.
Ircon International Ltd. bagged two orders worth Rs 1,113 crore to undertake work on the Mumbai Metro Rail Lines-5 and Line-6, according to an exchange filing on Friday.
The orders have been awarded by the Mumbai Metropolitan Region Development Authority.
The first order is worth Rs 471 crore and is for "package 2 of Line-5". It involves the design, manufacture, supply and installation of "220 kV receiving Substation Including 220 kV, 33kV & 25kV cabling work, complete 25kV overhead catenary system along with switching station, 33kV auxiliary power distribution system including 33/0.415 kV auxiliary sub-station and complete SCADA system, electrical and mechanical works, lift and escalator works," as stated in the filing.
The company will also undertake integration, testing and commissioning for the project, which will be for "parts of Main Line, Stations & Kasheli Depot of Mumbai Metro Rail Line 5 Project", according to the filing.
This also includes five years of comprehensive maintenance after two years of defect liability and maintenance period.
The build period is of 108 weeks.
The second order is worth Rs 642 crore and involves the design, manufacture, supply and installation of power supply and traction, electrical and mechanical, lifts and escalators for "package-2 of Line 6" which includes Swami Samarth Nagar to Vikhroli.
The company will also undertake integration, testing and commissioning for the same.
The build period is for 104 weeks. This also includes five years of comprehensive maintenance after two years of defect liability and maintenance period.
Also, RVNL has issued a Rs 756-crore order to a joint venture involving Ircon for the "construction of roadbed, minor bridges, buildings, installation of track" and other civil engineering and general electrical works in "connection with New BG Railway Line" between Pipaliya Nankar and Budni railway stations in Madhya Pradesh. Ircon's share in the project stands at Rs 529 crore.
Shares of Ircon closed 1.52% lower at Rs 186.90 apiece on the NSE, compared to a 0.57% fall in the benchmark Nifty. The stock has fallen 40.25% in the last 12 months and 16.75% on a year-to-date basis.
Out of three analysts tracking the company, one recommends a 'hold' on the stock and two suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 11.2%.
