IRCON stock slips 5% as Q2 results disappoint; margins narrow amid revenue, PAT decline

Ircon Interational stock has rallied approximately 17 percent so this year, outpacing Nifty's 10 percent gain.

Shares of IRCON International plunged more than 5 percent on November 8 after the company announced dismal financial results for the quarter ended September 30, revealing a decline in both revenue and net profit.

During the July-September period, IRCON recorded a standalone net profit of Rs 202.22 crore, reflecting a 12.2 percent on-year decline. Its revenue from operations also saw a significant year-on-year decrease of 20.3 percent, reaching Rs 2,298.86 crore.

IRCON’s domestic revenue was also impacted, falling 18 percent YoY to Rs 2,206.03 crore. International revenue fell more sharply, ending at Rs 92.83 crore, a notable drop from Rs 197.67 crore in the same quarter of the previous year.

The railway infrastructure company also shared details about its order book status for the quarter. By the end of September, IRCON’s total order book had contracted to Rs 24,253 crore, down from Rs 26,034 crore in the year-ago period.

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The majority of IRCON's order book—78 percent or Rs 18,959 crore—comes from railway projects, while 22 percent, or Rs 5,210 crore, is attributed to highway projects. Orders from other categories totalled Rs 84 crore.

According to the company, 90 percent of the orders were from domestic clients, while international clients accounted for the remaining 10 percent. Approximately half of the orders, worth around Rs 12,731 crore, were acquired through competitive bidding. The other totaling Rs 11,522 crore, were awarded via direct nominations.

As of 10:39 am, Irco International shares were trading 5 percent lower at Rs 204.42 on the National Stock Exchange (NSE). The stock has rallied approximately 17 percent this year, outpacing Nifty's 10 percent gain.

Over the past 12 months, the stock has soared 32 percent, while Nifty rose 23% during the same period

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