Ircon International Limited (IRCON) is a diversified infrastructure services company. It is a government company incorporated in 1976 by the Central Government (Ministry of Railways) under the name Indian Railway Construction Company Limited. Ircon is the leading turnkey construction company in the public sector, known for its quality, commitment and consistency in terms of performance. In 1992, it was listed on the BSE Limited and the Delhi Stock Exchange Limited. Ircon received Mini Ratna Category ‘1 ‘ status from the Ministry of Railways in 1998. In 2011 and 2012, the company was voluntarily delisted from BSE and Delhi Stock Exchange Limited, respectively. After 6 years, Ircon was listed on BSE and NSE in 2018 after an IPO to the general public. The business is well-diversified in several states of India and other countries, including Nepal, Malaysia, Bangladesh, Mozambique, Ethiopia, Afghanistan, the UK, Algeria and Sri Lanka. The company provides services to multiple sectors such as Railways, Highways, Telecom,  Aviation, etc. IRCON is a specialised construction organisation covering the entire spectrum of construction activities and services in the infrastructure sector. However, Railway and Highway Construction, EHP sub-station (engineering and constructions), and  Mass Rapid Transit System (MRTS) are the core competence areas of the company. So far, IRCON has finished over 300 infrastructure projects nationwide and more than 100 projects across the globe in more than 21 countries. During 2018-19, the company received the ET Star of the Industry Award and the IBC Award for Excellence in Built Environment in the same year.

Business Segments (including international and domestic)

• Railways: The company takes up projects such as rail coach factories, installation of tracks, etc. During FY 2023, the segment derived ~93.87% of total revenues.
• Highways: Under this segment, Ircon deals with projects such as the construction of highways, extension of highways, etc. Around 5.88% of revenue comes from the segment.
• Others: The scope of work includes building, bridges, telecom, mechanical, etc. Ircon recorded 0.25% of the total revenue from these businesses in FY 2023.

Corporate Action

In 2021, the company announced a bonus issue in a ratio of 1:1 with a record date of  May 20, 2021.

Management Outlook

• The company is planning to capitalise on its advantageous position in the market both in terms of its expertise and financial strength. It is committed to strengthening its operations internationally as part of its overarching business expansion strategy.

• The company's strategic focus revolves around increasing its market presence within the domestic sector by actively strengthening its involvement in key industry segments such as railways, highways, bridges, and tunnels.

SWOT Analysis

Strengths

• Diversified business segments.
• Wide geographical presence.

Weaknesses

• Exposure to several guidelines not meant for other private companies.
• Business instability due to geo-political cues.

Opportunities

• Government focus on Infrastructure.
• Business growth from National Rail Plan.

Threats

• High volatility in commodity prices.
• Rising competition due to the entry of small players.