IRCON International Q3 Results: Net profit drops 65% to ₹86 crore, revenue down 10% YoY; dividend declared
- IRCON International Q3 Results: The state-run engineering and construction firm's revenue from operations in the third quarter of the current fiscal fell 10 per cent to ₹2,612.86 crore
IRCON International Q3 Results: IRCON International announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Tuesday, February 11, reporting a steep drop of 65 per cent in consolidated net profit to ₹86 crore, compared to ₹244.70 crore in the corresponding period last year.
The state-run engineering and construction firm's revenue from operations in the third quarter of the current fiscal fell 10 per cent to ₹2,612.86 crore, compared to ₹2,929.54 crore in the year-ago period. The total order book stands at Rs. 21,939 crore. The breakdown is as follows: Railways – Rs.17,075 crore, Highways – Rs. 4,775 crore, Others – Rs. 89 crore.
IRCON International Q3 Results: Key Metrics
On the operational front, IRCON International's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the December quarter rose 73 per cent to ₹218.3 crore, compared to ₹378 crore in the year-ago period. Margin rose to 8.1 per cent compared to 8.2 per cent in the year-ago period.
EPS for the December quarter (not annualized) is ₹0.92 per equity share with a face value of ₹2 per share. Total income stands at Rs. 2,691.9 crore in Q3FY25 compared to Rs. 3,011.9 crore in Q3FY24. Profit Before Tax (PBT) was Rs. 131.8 crore in Q3FY25 compared to Rs.313.8 crore in Q3FY24.
IRCON International declared an interim dividend of Rs. 1.65 per equity share on the face value of Rs. 2 each (82.50 per cent of the paid-up equity share capital) for the financial year 2024-25 (FY25). The record date for the payment of the dividend is February 17, 2025.
"Further, as informed vide our letter dated February 4, 2025, submitted to Stock Exchanges, pursuant to Regulation 42 of SEBI (LODR) Regulations, 2015, the record date for the purpose of payment of Interim Dividend for the financial year 2024-25 would be Monday, February 17, 2025. The interim dividend will be paid from Friday, February 28, 2025 onwards," said the railway PSU in a regulatory filing to the stock exchanges.
On the outlook, IRCON International said the infrastructure sector in India looks promising and is undergoing significant transformations driven by government initiatives, private sector participation, and rapid urbanization. India is on a path to expanding its transportation infrastructure, focusing significantly on roadways, railways, and airports.
The government drives infrastructure development through strategic initiatives, such as PM Gati Shakti, the National Logistics Policy, the Bharatmala and Sagarmala Projects, the Pradhan Mantri Awas Yojana, and the Smart Cities Mission. Under PM Gati Shakti, three major railway corridor programs have been announced to enhance logistics efficiency and reduce operational costs.
Additionally, urban transformation initiatives like Metro Rail and NaMo Bharat are set to boost public transit infrastructure. These government initiatives create favourable conditions for growth in the infrastructure sector, which the company is well-positioned to capitalize on.
IRCON International Limited is a Navratna public sector enterprise and a leading turnkey construction company in the public sector (under the Ministry of Railways). On Tuesday, shares of IRCON International settled 4.87 per cent lower at ₹179.75 apiece on the BSE ahead of declaring Q3FY25 results.
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