• Total Revenue: INR11,131 crore in FY25.

• Profit After Tax (PAT): INR728 crore in FY25.

• Core EBITDA: INR905 crore in FY25.

• Earnings Per Share (EPS): INR7.73 per equity share in FY25.

• Order Book: INR20,347 crore as of March 31, 2025.

• Dividend: Total dividend of INR2.65 per equity share for FY25.

• Warning! GuruFocus has detected 6 Warning Signs with NSE:IRCON.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• IRCON International Ltd (NSE:IRCON) reported a total revenue of INR11,131 crore for FY25, with a PAT of INR728 crore and core EBITDA of INR905 crore.

• The company has a strong order book of INR20,347 crore as of March 31, 2025, with 58% from competitive bidding and the rest from nomination basis.

• IRCON has diversified into new verticals such as Kavach, a train protection warning system, and signaling diagnostics, which are expected to provide significant growth opportunities.

• The company has received new orders worth INR1,150 crore in FY26 up to May 22, 2025, indicating a positive start to the new fiscal year.

• IRCON has recommended a final dividend of INR1 per equity share, bringing the total dividend for FY25 to INR2.65 per equity share, reflecting a commitment to returning value to shareholders.

Negative Points

• The operational performance for Q4 and FY25 was subdued due to the completion of major cost-plus jobs, a reduced order book, and one-off provisions or losses.

• The company faced increased competition in the sector, which has put pressure on margins, with an expected decline of 0.5% to 1% going forward.

• One-off items, such as a provision for LD in a job on DFTC amounting to INR108 crore and losses on projects like Chennai Metro, impacted financial results.

• Operational losses were incurred in some projects, such as a coal connectivity project in Chhattisgarh, which may continue until full project completion.

• Despite entering new verticals, the dominance of EPC orders with intense competition is expected to continue squeezing margins.

Q & A Highlights

Q: Could you quantify the one-off items during the quarter that led to lower margins? A: Ragini Advani, Director of Finance, explained that the one-off items included a provision for liquidated damages amounting to INR108 crore related to a job on DFTC, and losses of about INR40 crore on the Chennai Metro project. Additionally, there were operational losses in a coal connectivity project in Chhattisgarh, which are expected to be resolved in about two years.

Q: From a medium-term perspective, how should one look at growth, given the current order book? A: Hari Gupta, CMD, stated that the company has an order book of around INR20,500 crore, with significant orders received in FY24/25 and FY25/26. The company is entering new verticals like Kavach and signaling diagnostics, which are expected to contribute to future growth. Despite increased competition, the company is optimistic about maintaining turnover and managing margins.