Shares of Ircon International Ltd. plunged over 7% on Friday after the company reported a decline in its net profit in the second quarter of the financial year 2025.
The public sector undertaking posted a 17.9% decline in its net profit to Rs 206 crore, as compared to Rs 251 crore for the same period last year.
The turnkey construction company recorded a revenue of Rs 2,448 crore, indicating a 19.3% fall for the three months ended Sept. 30, 2024, as against Rs 3,033 crore for the same quarter of the previous financial year.
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Its earnings before interest, tax, depreciation and amortization was down 23.4% at Rs 201 crore for the July-September quarter, as compared to Rs 262 crore. Its margins contracted to 8.2% from 8.6% for the year-ago period.
On Thursday, Contractor Apex Buildsys Ltd. filed a claim worth Rs 38.71 crore against Ircon International over disputes related to their Raebareli project.
Ircon's stock fell as much as 5.96% during the day to Rs 202.45 apiece on the NSE. It was trading 5.06% lower at Rs 204.4 apiece, compared to a 0.07% decline in the benchmark Nifty 50 as of 10:12 a.m.
It has risen 32% during the last 12 months and has advanced by 19% on a year-to-date basis. The total traded volume so far in the day stood at 3.3 times its 30-day average. The relative strength index was at 41.
One out of the four analysts tracking the company has a 'buy' rating on the stock, two suggest a 'hold' and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 18.8%.
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