Home Transport Infrastructure News Railways News IRCON is set to bid for Zoji-La tunnel and bullet train project

    IRCON is set to bid for Zoji-La tunnel and bullet train project

    IRCON International

    IRCON International Ltd is eyeing for new upcoming projects to boost its revenues, the high-speed rail corridor and the challenging project of Zoji-la tunnel. They started the preparation for bidding and conducting cost analysis and for high-speed, work is going on an advanced stage.

    The central public sector enterprise also plans to take up more works of Indian Railways in the current financial year. IRCON, which is also involved in rail electrification, aims to electrify nearly 7,000-km of rail tracks in the present financial year.

    The company has a current order book of Rs 47,000 crore till date and work on projects worth Rs 28,000 crore has already commenced.

    The company’s standalone net profit fell by 55.81 percent to Rs 95.59 crore during the quarter ended March 31, on account of higher expenses. For the year ended March 31, its net profit stood at Rs 444.68 crore as compared to Rs 387.90 crore a year ago.

    During October-December, the quarterly performance was aided by tax refund and exchange rate gain and these factors were not there during the March quarter but this year, these factors will be evenly spread out.

    The company will also focus on neighbouring countries such as Sri Lanka, Nepal, Bangladesh, and far east countries like Malaysia and Thailand and may also enter into strategic tie-ups for these projects.

    As far as the top line is concerned, the company expects growth of at least 18-20 percent for FY20, may grow at 30 percent on better orders. For the bottom line, IRCON expects competitive projects and operating margins of 15-20 percent on foreign projects to aid its net profit for 2019-20 (April-March).

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