IRCON · Construction
IRCON International Ltd. reported revenue of ₹2,287 cr for April to June 2024, −17.3% on the year and −39.6% on the quarter.
Operating profit (EBITDA) was ₹251 cr, a margin of 11.0%, +189 bps on the year and +260 bps on the quarter. Operating costs grew −19.0% against revenue growth of −17.3%, so more of each rupee of sales reached operating profit.
Net profit was ₹224 cr, +19.8% on the year and −9.3% on the quarter, with earnings per share of ₹2.38. Profit before other income, one-offs and tax fell 12.1%, so 32 points of the headline growth came from outside the core business. The tax rate was 20% against an average of 27% over the previous 4 quarters, which lifted profit this quarter.
Capital goods and EPC revenue follows project execution, which makes quarters uneven; the order book and new orders tell more about the year than one quarter does. The quarterly statements do not carry the order book, new orders and working capital; those come with the filing read.
On earnings per share of ₹10.27 over the last four quarters, the stock at ₹106.62 trades at 10.4 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Headline profit grew much faster than core profit. What made up the difference?
Reported profit +19.8% on the year; profit before other income, exceptional items and tax −12.1%.
Source: Quarterly statements
Other income is carrying a large and rising share of profit. Treasury gains, interest, or one-off?
Other income was 38% of profit before tax, against 24% a year earlier.
Source: Quarterly statements
Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
Finance cost ₹48.0 cr, +45.5% on the year; 19% of EBITDA.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹2,987 cr | ₹2,930 cr | ₹3,787 cr | ₹2,287 cr | ₹2,448 cr | ₹2,613 cr | ₹3,412 cr | ₹1,786 cr | ₹1,977 cr | ₹2,119 cr | ₹3,189 cr | ₹1,956 cr |
| YoY | — | — | — | −17% | −18% | −11% | −10% | −22% | −19% | −19% | −7% | +10% |
| EBITDA margin | 7.2% | 8.8% | 8.4% | 11.0% | 8.2% | 5.1% | 7.4% | 11.2% | 7.1% | 7.5% | 8.4% | 9.8% |
| Other income, % of PBT | 54% | 38% | 30% | 38% | 54% | 65% | 39% | 58% | 91% | 83% | 49% | 69% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 24% | 22% | 31% | 20% | 22% | 35% | 19% | 22% | 21% | 26% | 23% | 27% |
| Net profit | ₹251 cr | ₹245 cr | ₹247 cr | ₹224 cr | ₹206 cr | ₹86.0 cr | ₹212 cr | ₹164 cr | ₹137 cr | ₹100 cr | ₹191 cr | ₹92.0 cr |
| YoY | — | — | — | +20% | −18% | −65% | −14% | −27% | −33% | +16% | −10% | −44% |
| Core profit YoY | — | — | — | −12% | −21% | −76% | −36% | −50% | −87% | −50% | −21% | −55% |
| EPS | ₹2.67 | ₹2.60 | ₹2.62 | ₹2.38 | ₹2.19 | ₹0.92 | ₹2.24 | ₹1.75 | ₹1.47 | ₹1.07 | ₹2.04 | ₹0.99 |
| Flags | 1 | 1 | 1 | 3 | 2 | 3 | 1 | 2 | 2 | 3 | 2 | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
IRCON International Ltd. reported revenue of ₹2,287 cr (−17.3% on the year) and net profit of ₹224 cr (+19.8% on the year) for April to June 2024.
Profit before other income, exceptional items and tax moved −12.1% on the year, against +19.8% for reported profit.
3 checks raised a question: Headline profit grew much faster than core profit. What made up the difference?
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