Shares of Ircon International Ltd rose 1.94% to ₹191.95 on Tuesday following the announcement of a significant contract win. The stock opened higher at ₹188.40 and touched an intraday high of ₹193.80, compared to the previous close of ₹188.30.
The uptick comes after Ircon revealed that it has bagged a Rs 253.6 crore work order from South Western Railway for the implementation of the indigenous train collision avoidance system, KAVACH. The project will be deployed across 778 route kilometers in the Bengaluru and Mysuru divisions.
As per the exchange filing, the scope of work includes the survey, design, supply, installation, testing, and commissioning of the KAVACH system along with other associated components. The contract timeline is set at 18 months from the date of the Letter of Acceptance (LOA).
The stock movement comes despite the company reporting a subdued set of Q4 FY24 results earlier. Net profit declined 3.8% YoY to Rs 246.8 crore while revenue dipped slightly by 1% YoY to Rs 3,742.7 crore. EBITDA rose to Rs 286.3 crore, improving margins to 7.7%.
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