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Ircon International Q3: Mixed readings because of natural phenomenons, says management

Updated : February 12, 2020 02:23 PM IST

Ircon International Ltd, a leading turnkey construction company, on Tuesday, reported 52.5 percent rise in consolidated net profit to Rs 142.43 crore for the quarter ended December 31.

However, the consolidated income of the company during October- December period declined three percent to Rs 1,247.10 crore compared to Rs 1,264.35 crore in the year-ago period

Sunil Kumar Chaudhary, CMD of Ircon International, spoke to CNBC-TV18 to help understand the quarter gone by.

Speaking about topline and margins Sunil Kumar Chaudhary said, “The main reasons for the decline in the turnover in this quarter are the heavy snowfall in Jammu and Kashmir, where we are doing a major project of rail connectivity, and rainfall in Gujarat, where we are doing the Dedicated Freight Corridor at Vadodara Expressway."

"As far as profit is concerned, we have received Rs 45 crore this quarter from Algeria where we are executing a project and around Rs 20 crore tax refunds. This is the reason for our increase in profit,” he added.

While giving details about his company’s order book at the end of Q3 he said, “Rs 32,000 crore approximately is our order book. International sector is approximately Rs 1,500 crore out of this but other projects which we have in hand are approximately Rs 10,000-12,000 crore."

Talking about margins going ahead Chaudhary said, “Our sustainability generally is around this range only because it is a construction company. We will definitely be able to hold 12 percent.”
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