Ircon International Bags Rs 1,000-Crore Order From Meghalaya Government For Secretariat Construction

Ircon International Ltd. has, on Monday, secured an order worth Rs 1,096 crore for the construction of a new secretariat complex in Shillong by the government of Meghalaya, as per a notification to the exchanges.

The order, which comprises campus infrastructure on an engineering, procurement and construction basis, is expected to be executed within three years. The government of Meghalaya awarded this order as part of a joint venture between Ircon, with a share ratio of 26%, and Badri Rai and Co., with a share ratio of 74%.

The 'navratna' public sector enterprise recorded a 64.89% fall in consolidated net profit at Rs 86 crore for the quarter ended December, compared to Rs 245 crore in the same quarter of the previous fiscal.

Revenue decreased 10.83% year-on-year for the three months ended December, reaching Rs 2,612 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 49.05% year-on-year to Rs 131.5 crore. The Ebitda margin contracted by 377 basis points to 5.03% from 8.81% reported in the same period last year.

In addition, the company had announced an interim dividend of Rs 1.65 per share.

Ircon International Share Price Data

Shares of the company ended 1.75% lower at Rs 138.17 apiece, as compared to a 0.5% advance in the benchmark NSE Nifty 50. The company's 25.39% in the last 12 months. The relative strength index was at 30.14.

Out of three analysts tracking the company, one recommends a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 6.2%.