Explained: Why Ircon International share price slipped 5% after Q2 results

Shares of Ircon International dropped over 5% on November 8 after the company posted weak financial results for the quarter ending September 30, showing declines in both revenue and net profit.
For the July-September quarter, Ircon reported a standalone net profit of Rs 202.22 crore, down 12.2% year-on-year (YoY). Revenue from operations also saw a steep fall, dropping 20.3% YoY to Rs 2,298.86 crore.
The company’s domestic revenue declined by 18% YoY to Rs 2,206.03 crore, while international revenue took a more pronounced hit, falling to Rs 92.83 crore from Rs 197.67 crore a year ago.
IRCON’s order book at the end of September stood at Rs 24,253 crore, down from Rs 26,034 crore in the same period last year. The majority of the order book, approximately 78% or Rs 18,959 crore, is tied to railway projects, with the remaining 22% (Rs 5,210 crore) allocated to highway projects. Orders from other sectors totaled Rs 84 crore.
Of Ircon’s total orders, 90% were from domestic clients, with 10% from international clients. About half of the orders, valued at Rs 12,731 crore, were secured through competitive bidding, while the rest, worth Rs 11,522 crore, came through direct nominations.
At 11:01 am, shares of Iron were down 4.88% to Rs 204.60. Despite today’s decline, the stock has gained roughly 17.4% this year, outperforming Nifty’s 10% rise. Over the past 12 months, IRCON has surged 32%, compared to Nifty’s 23% gain during the same period.
Meanwhile, shares of Rail Vikas Nigam Limited (RVNL) also saw a decline today, dropping as much as 7% in early trade following a drop in Q2 net profit.