State-owned engineering and construction firm Ircon International Ltd on Wednesday reported a consolidated net profit of Rs 84.07 crore for the quarter ended September 30, 2020.
It had clocked a consolidated net profit of Rs 82.82 crore in the corresponding period a year ago, it said in a regulatory filing.
Ircon’s total income during the quarter under review declined to Rs 1,040.41 crore as against Rs 1,237.36 crore in the year-ago period.
“In this quarter, we have bagged two orders worth approx Rs 2,300 crore. Firstly, a works order for construction of nine road over bridges worth more than Rs 400 crore from Ministry of Railways…
“Secondly, Railway Electrification Works for various routes of 2,251 Route Kilo meter (RKM) worth approx Rs 1,900 crore on competitive bidding basis among PSUs from the Ministry of Railways, Government of India,” the company said in a statement.
It said it has ramped up operations significantly and currently construction activities have reached pre-COVID levels.
“As of September 30th 2020, the total order book stands at Rs 31307.84 crore,” it said, adding this includes Rs 29,890.40 crore orders in railways sector and Rs 1,417.44 crore orders in the highways segment.
The company further said it is actively monitoring the impact of the COVID-19 pandemic on its financial condition, liquidity, operations and workforce.
Ircon has been able to resume operations at various project sites from the beginning of May 2020 in a gradual manner, it said and added it has made substantial improvement in its revenue from operations in the second quarter of 2020-21 as compared to the previous quarter.
“The company expects to recover the carrying amount of its assets comprising property, plant and equipment, investment properties, intangible assets, right of use assets, inventory, advances, trade receivables, deferred taxes, other financial and non-financial assets etc. in the ordinary course of business based on information available on current economic conditions,” it noted.
The core competence of Ircon is in railways, highways and extra high tension substation engineering and construction.
Ircon also has operations in Malaysia, Nepal, Bangladesh, South Africa, Algeria and Sri Lanka. It has completed more than 128 projects in 25 countries and 390 projects in various states in India.