Ircon International shares tank 9% on dismal Q3 earnings show

Ircon International share has dropped 22 percent year-to-date.

Shares of Ircon International plunged over 9 percent and hit a 52-week low of Rs 159.61 on February 12 as investors dumped the stock following the company's poor Q3 earnings show, marked by a fall in its net profit as well as revenue.

The company's net profit registered a steep decline of 65 percent to Rs 86 crore, down from the Rs 244.70 crore that it had clocked in the corresponding period last year. The state-run engineering and construction firm's revenue also declined 10 percent on year to Rs 2,612.86 crore, as compared to Rs 2,929.54 crore in the year-ago period.

Despite the weak earnings, the company's operational performance stood steady as EBITDA margins remained largely unchanged at around 8.2 percent.

At 09.24 am, shares of Ircon International were trading at Rs 168.99 on the NSE.

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The company's total order book stood at Rs 21,939 crore at the end of the December quarter, including Rs 17,075 crore worth of orders from the railways sector, Rs 4,775 crore from highways and other projects making up the remaining Rs 89 crore.

Beyond the company's weak earnings, a broader market selloff fueled by persistent global macro concerns has further pressured the stock. Ircon International had enjoyed a strong bull run through the first half of 2024, but worries over stretched valuations and weakening earnings have triggered a wave of profit booking. The recent downturn has been particularly sharp, with the stock plunging 22 percent year-to-date.

The selloff in the recent months has been so intense that the stock has lost 22 percent of its value year-to-date. Moreover, the stock has nearly halved in value since touching its record high of Rs 351.60 in July last year.