Ircon International shares jump 8% after Q1 profit rises 30% YoY

economictimes.indiatimes.com:

Ircon International jumped 8% to Rs 107.6 in Wednesday's trade on BSE after the firm reported a 29.6% year-on-year (YoY) rise in its consolidated net profit at Rs 187.4 crore for the first quarter ended June 30, 2023. In the corresponding quarter last year, Ircon International had posted a net profit of Rs 144.6 crore on a topline of Rs 2,001.9 crore. The infrastructure company reported a 35.7% on-year rise in its consolidated revenue from operations during the quarter to Rs 2,712.2 crore.

At the operating level, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped 31.2% YoY to Rs 208.8 crore in the first quarter. The company's EBITDA margin stood at 7.8% in the reporting quarter as compared to 8% in the corresponding period in the previous fiscal. The total order book as on June 30, 2023, stood at Rs 32,486 crore, out of which railway segment is Rs 23,613 crore, highway Rs 6,906 crore, and others Rs 1,967 crore.

The company said that the share of orders it has won on a competitive bidding basis is consistently increasing and reached 55% of the total order book as of June 30, 2023. Ircon is a Miniratna (Category — I) public sector enterprise and a leading turnkey construction company. The core competence of Ircon is in railway and highway projects.

At 10.14 am, the scrip was trading 6.8% higher at Rs 106.5 on BSE. On a year-to-date basis, the stock has surged 80%, while it has rallied over 90% in the past six months. In the last one year, it has also delivered a 175% return.

Technically, the stock's day RSI (14) is at 64.3. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 3.5, which is above its center and signal line, which is