IRCON Faces Claims Worth Rs 39 Crore Amid Project Dispute With Apex Buildsys

The core of the dispute revolves around liquidated damages deductions, PVC, and overhead charges, IRCON said in an exchange filing on Monday.

Share price of IRCON International Ltd. closed almost 5% lower post dispute worth Rs 39 crore with Apex Buildsys Ltd.

(Photo source: IRCON International Ltd. website)

Contractor Apex Buildsys Ltd. filed a claim worth Rs 38.71 crore against IRCON International Ltd. over disputes related to their Raebareli project. The core of the dispute revolves around liquidated damages deductions, PVC, and overhead charges, according to an exchange filing on Monday.

The work involves the construction of multiple specialised facilities, including a wheel shop, bogie shop, paint shop, garnet blasting shop, machine shop, transport shop, and a shell store for the rail coach factory in Raebareli, it added.

The project entails architectural and structural design, along with the fabrication, supply, and erection of pre-engineered steel buildings at Lalganj, Raebareli.

Also Read: Ircon International Gets Rs 750-Crore Order From RVNL For Track Installation

IRCON International's Q1 Result Review: IDBI Capital

IDBI Capital said that the company's profit after tax for the financial year 2025's first quarter came in-line with its estimates. Operating performance was weak as revenue declined by 17% and and adjusted Ebitda margin at 6.8% was flat quarter-on-quarter, according to IDBI Capital.

IRCON guides revenue growth to be flat on year-on-year basis in fiscal 2025 and Ebitda margin to be maintained at the same level, the brokerage said. Its order win has been lukewarm and order book has seen weakness at Rs 26,000 crore in the first quarter of the current fiscal versus Rs 32,500 crore year-on-year, it said.

Also Read: India To Regain 34% Investment Ratio By 2030 Aided By Construction, Power, Says Axis Capital

IRCON International Stock Movement

Shares of IRCON International closed 4.96% lower at Rs 206.58 apiece on the NSE, compared to a 0.87% decline in the benchmark NSE Nifty 50. It fell as much as 6.38% to Rs 203.5 apiece, the lowest level since March 15, 2024.

The stock has risen 20.53% on a year-to-date basis. Total traded volume in the day stood at 1.49 times its 30-day average. The relative strength index was at 23.39, indicating that the stock may have been oversold.

Out of four analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold,' and one suggests a'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17%.

Also Read: AI-Powered Cameras To Be Installed To Address Spike In Rail Accidents

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WRITTEN BY
Divya Prata
Divya Prata is a desk writer at NDTV Profit, covering business and market n... more
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