Ircon International Limited
Indian Railway Construction International Limited or Ircon International Limited (IRCON) commenced its business in 1976 as a railway construction company, it diversified progressively since 1985 as an integrated engineering and construction PSU specializing in large and
technologically complex infrastructure projects in various sectors. Only Indian PSU and one of the five Indian companies on the list of top 250 international contractors.
Core Competencies:
(i) Sectoral leader in transportation infrastructure among Indian public sector construction companies. (ii) Expertise in executing railway projects on a turnkey basis.
Key Areas
- Railways
- Highways
- Bridge & Flyovers,
- Buildings
- Aircraft Hangars
- Solar
- Institutional and Residential
- Development of Industrial Areas
- Electrical and Mechanical
- OHE Sub-Station
- Tunnels and Runways
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 12,331 | 10,368 | 7,380 |
| Sales Growth % | 18.93% | 40.49% | 37.94% |
| Expenses | 11,407 | 9,664 | 6,795 |
| Operating Profit | 924 | 704 | 585 |
| OPM % | 7% | 7% | 8% |
| Net Profit | 930 | 765 | 592 |
| EPS in Rs | 9.88 | 8.14 | 6.3 |
Synopsis of Financials
- Reported total revenue of ₹12,871 crores in FY24, up by 20% compared to the previous year.
- PAT increased by 21.5% to ₹930 crores.
- Earnings per share increased to ₹9.88 per equity share in FY24.
Final Outlook
IRCON International Ltd. maintains a healthy dividend payout ratio of 36.0%. The decrease in promoter holding over the last 3 years (-8.01%) is due to the Union government’s proposal to sell stake in the company through an offer for sale (OFS). Despite this, the company’s financial statements depict strong fundamentals, with a 40.49% increase in revenue from operations and a significant 29.2% increase in net
profit for the year. With a Price-to-Earnings (P/E) ratio of 27.4x and an uptrend in share price, investors’ positive expectations are evident. The railway PSU stock has increased by more than 19% in the last month and more than 8% in the last two weeks, for a remarkable gain of 58.68 percent over the last three months. In addition, the company has gained 129.89% YTD and given investors a return of 125.74 percent over the past six months. In addition, the stock has returned 243.38 percent over the past year and has increased by 1284.30 percent during the previous two years. According to BSE data as of July 4, investors have received an excellent return of 1377.07% on their investment in RVNL shares over the last five years. The debt to equity ratio of 0.44 further highlights the company’s strong financial position. It is recommended to consider buying the shares
