Ircon International shares in focus as Co inks MoU with Patel Engineering for infra projects
Ircon International shares are in focus after the company signed a Memorandum of Understanding (MoU) with Patel Engineering Limited. This agreement aims to foster collaboration between the two companies in exploring, identifying, and jointly executing mutually beneficial business opportunities in various infrastructure projects, both in India and overseas.
The stock is also drawing attention due to the recent shareholding changes in the September quarter. Mutual funds reduced their stake in the railway infrastructure company, with holdings dropping to 0.31% as of September 30, down from 1.67% at the end of the June quarter. Notably, Quant Active Fund exited its position in Ircon during this period, after holding a 1.15% stake in the company as of June.
Foreign institutional investors (FIIs) also pared their holdings, reducing their stake to 3.94% from 4.17% at the end of June. In contrast, retail investors increased their stake, now holding 25.56%, up from 23.41% in the previous quarter.
For Q1 FY25, Ircon International reported a 17% decline in consolidated revenue, with a topline of Rs 2,287.1 crore, compared to Rs 2,763.8 crore during the same period last year. Despite this revenue dip, the company's net profit rose by 19.5% to Rs 224 crore, driven by lower expenses.
IRCON's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat year-on-year, declining by 2% to Rs 250.6 crore, while EBITDA margin expanded by nearly 200 basis points to 11% from 9.2% last year.
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