Ircon International’s shares remained stable in early trade on September 25, following the company’s execution of a contract agreement with Sri Lanka Railways. The contract involves the procurement, design, installation, testing, commissioning, and certification of a signalling and telecommunication system from Maho Junction to Anuradhapura, with a total value of $14.89 million (approximately Rs 122 crore) under the Indian Line of Credit. The project is slated to be completed within 24 months from the contract’s signing.
In August, the National Stock Exchange of India Limited (NSE) and BSE Limited imposed fines of Rs 5,36,900 each on Ircon International for non-compliance with Regulation-17(1), pertaining to the independence of board members. The company clarified that all directors in Ircon are appointed by the government through the Ministry of Railways (MoR), and Ircon has no role in director appointments unless nominated by the Government of India.
Ircon International reported a 29.6 percent increase in its net profit for the June quarter, reaching Rs 187.36 crore. The company’s shares have touched a 52-week high of Rs 174.55 and a 52-week low of Rs 38.60, and it is currently trading 19.19 percent below its 52-week high and 265.41 percent above its 52-week low.
This contract agreement signifies Ircon International’s continued involvement in railway infrastructure development and expansion projects, further strengthening its presence in the rail sector.