IRCON Q1 results: Net profit rises 19% to ₹224 crore, revenue falls 17% to ₹2,287 crore

Indian Railway Construction International Limited or IRCON International, on Thursday, posted an increase in its consolidated net profit increased by 19 per cent to ₹224 crore, up from ₹187.36 crore in the same quarter last year. However, revenue from operations was ₹2,287 crore, which represents a 17 per cent decline from ₹2,763.84 crore reported in the same quarter of the previous year.

This decline reflects a reduction of ₹477 crore in revenue year-over-year, highlighting a significant shift in the company's financial performance for the quarter.

In the first quarter of FY24, the company's EBITDA rose to ₹357 crore, reflecting a 13.3% increase from ₹315 crore in the previous quarter. This growth highlights a solid improvement in financial performance, with the EBITDA margin standing at 15.0 per cent. This margin indicates a strong operational efficiency and profitability, underscoring the company's positive trajectory and effective cost management.

Whereas, the company's standalone total income amounted to ₹2,278 crore, a decline from ₹2,693 crore reported in Q1FY24. Standalone revenue from operations also decreased during the same period, reaching ₹2,180 crore compared to ₹2,626 crore in Q1FY24. This reflects a reduction in both overall income and operational revenue year-over-year.

Meanwhile, standalone profit after tax saw a notable increase by 9.2 per cent to ₹177 crore compared to ₹162 crore in the same period of FY24. This growth reflects a strong performance and operational efficiency, underscoring the company's positive financial trajectory and effective management strategies over the past year.

Company outlook

The company said in an exchange filing, “In Budget 2024, Capital Expenditure has been increased by 11.11% to Rs.11.11 lakh crore. Capital outlay of Rs.2.52 lakh crore and Rs.2.72 lakh crore has been provided for Railways and Road & Highways respectively, which is the highest ever outlay.

India is working towards expanding its transportation infrastructure, with a focus on roadways, railways and airports. The Government has been working on infrastructure development through initiatives like PM Gati Shakti, National Logistics Policy, Bharatmala Project, Sagarmala Project, Pradhan Mantri Awas Yojana, and Smart Cities Mission. Government has announced implementation of 3 major railway corridors programmes under PM Gati Sakti to improve logistics efficiency and reduce cost. It is announced to promote urban transformation via Metro rail and NaMo Bharat."