IRCON International gained 0.88% to Rs 80.20 after the company secured work orders worth approximately Rs 2300 crore from the Ministry of Railways after competitive bidding.
At the company's 44th annual general meeting (AGM) held yesterday, S.K. Chaudhary, chairman and managing director of IRCON International, said that the company had an order book of Rs 30,263 crore as of Q1 FY21.
"We have submitted bids for two packages of bullet train worth about Rs 30,000 crore for 237 Km and 90 Km in consortium, where IRCON has 30% share," he said.
The chairman added that during Q2 FY21, the company has secured Railway Electrification work worth approximately Rs 1900 crore and worth approximately Rs 400 crore for Road Over Bridges (9 Nos) from Ministry of Railways, Govt. of India on bidding basis amongst bids from public sector undertakings (PSUs).
He further said to the shareholders that the company is highly liquid and there is enough cash balance and liquid investments to help us sail through these unprecedented times. The company shall always strive to maintain pre-covid margins on all levels.
IRCON International is an engineering and construction, specialized in transport infrastructure and is wholly owned by the Ministry of Railways. As on 30 June 2020, the Government of India held 89.18% stake in IRCON International.
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The company's consolidated net profit tumbled 76.2% to Rs 34.46 crore on a 50.8% decline in net sales to Rs 526.87 crore in Q1 June 2020 over Q1 June 2019.
The scrip has risen 8.64% in the past six months, underperforming the benchmark S&P BSE Sensex's 33.30% jump in the same period.
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