The company is also tapping into new verticals – such as a Kavach contracts and signalling, as part of its diversification plans
| Photo Credit:
NAGARA GOPAL
Ircon International – a Railways owned turnkey construction company – aims to monetise its strategic assets, including PPP projects, as they turn operational; and also profitable This plan is subject to approvals from the Ministry of Railways and DIPAM (Department of Investment and Public Asset Management). For mining projects where Ircon is a minority partner, decisions will be made in consultation with the respective coal companies. The company is also tapping into new verticals – such as a Kavach contracts and signalling, as part of its diversification plans.
Ircon currently has 11 subsidiaries and 7 joint ventures, including a renewable power company.
The company has invested about ₹2300 crore in all its SPVs; and another ₹1000 crore have to be invested further. In FY26, around ₹500 crore of this would be made.
Order book is around ₹20,000 crore.
During a recent investor call, the top brass confirmed that it would be keen to monetise operational assets subject to necessary clearances.
Hari Mohan Gupta, Chairman and Managing Director, Ircon International, said the objective would be to monetize as quickly as possible; and some proposals are already ready. “Once the project is completed… We have already started (the) process in that direction, and … two proposals are already,” he said during the investor call.
Ragini Advani, Director Finance of the company further clarified: “Railway and DIPAM will ultimately give a go ahead. It is a longish process, but their intent is to monetize PPP projects which are operational.”
According to her, in case of mining projects – which the company took up a some quarters back – the approach would be slightly different, since Ircon is a minority partner. Coal companies -who have ownership or lease of these mines – would not like to monetise them.
“We are a minority partner. So there that discussion will happen with coal companies, and they would be in a better position to take it (on monetising). But wherever there are these 100 per cent subsidiaries, I have already gone ahead, and we have taken this decision to move ahead for monetising them. There (in coal mining projects) they have obviously coal mines as their ownership, so they may not like to monetize it eventually,” she said.
In the Jan – Mar quarter, Ircon on a standalone basis have made one time provisions that include one to the tune of ₹108 crore. Äpart from that, I had mentioned in last quarter that we have taken certain losses on one or two of our jobs, one of them being Chennai metro, so that also is about ₹40 crores,”she said.
On a consolidated basis, there was an issue with a road SPV (major maintenance) that was taken into account. “And in one of our coal connectivity projects, this is Chhattisgarh, CERL – the project has been incurring operational losses. Some part of the project is yet to be constructed. So once that is constructed, and we have the full traffic there, then we shall probably not have losses going forward, maybe another two years down the line,” the Director Finance said.
CMD Gupta said, the company continues to diversify with it tapping into Kavach orders and bidding for new tenders. While it has also started looking into the Railway signalling vertical as a new business opportunity.
According to him, every Kavach tender is of the order of ₹250 – 300 crore.
“(A) ₹253 crore (order) we got for SWR (South Western Railway) and we have already bid in three more tenders. They are under evaluation. And the next phase of tendering would be available in July or August. Next wave of tendering again for Kavach will come. So, it’s an ongoing process, and whatever tenders are getting finalized, the execution is taking place,”he said.
It had previously won a ₹194 crore contract from the Central Railway to set up 665 Kavach towers.
A foray into new verticals are seen as margin accretive, specially when competition in the EPC segment is high. And the company, has flagged high competition as a reason for “squeezed” margin guidance.
“…. there is a slightly strain on the margins because of the increased competition and many of the bids being taken up at a very, very competitive rate. So there would be an overall decline in the range of about 0.5 – 1 going forward,”Director Finance, Advani said.
Published on June 5, 2025
The company is also tapping into new verticals – such as a Kavach contracts and signalling, as part of its diversification plans
| Photo Credit:
NAGARA GOPAL
Ircon International – a Railways owned turnkey construction company – aims to monetise its strategic assets, including PPP projects, as they turn operational; and also profitable This plan is subject to approvals from the Ministry of Railways and DIPAM (Department of Investment and Public Asset Management). For mining projects where Ircon is a minority partner, decisions will be made in consultation with the respective coal companies. The company is also tapping into new verticals – such as a Kavach contracts and signalling, as part of its diversification plans.
Ircon currently has 11 subsidiaries and 7 joint ventures, including a renewable power company.
The company has invested about ₹2300 crore in all its SPVs; and another ₹1000 crore have to be invested further. In FY26, around ₹500 crore of this would be made.
Order book is around ₹20,000 crore.
During a recent investor call, the top brass confirmed that it would be keen to monetise operational assets subject to necessary clearances.
Hari Mohan Gupta, Chairman and Managing Director, Ircon International, said the objective would be to monetize as quickly as possible; and some proposals are already ready. “Once the project is completed… We have already started (the) process in that direction, and … two proposals are already,” he said during the investor call.
Ragini Advani, Director Finance of the company further clarified: “Railway and DIPAM will ultimately give a go ahead. It is a longish process, but their intent is to monetize PPP projects which are operational.”
According to her, in case of mining projects – which the company took up a some quarters back – the approach would be slightly different, since Ircon is a minority partner. Coal companies -who have ownership or lease of these mines – would not like to monetise them.
“We are a minority partner. So there that discussion will happen with coal companies, and they would be in a better position to take it (on monetising). But wherever there are these 100 per cent subsidiaries, I have already gone ahead, and we have taken this decision to move ahead for monetising them. There (in coal mining projects) they have obviously coal mines as their ownership, so they may not like to monetize it eventually,” she said.
In the Jan – Mar quarter, Ircon on a standalone basis have made one time provisions that include one to the tune of ₹108 crore. Äpart from that, I had mentioned in last quarter that we have taken certain losses on one or two of our jobs, one of them being Chennai metro, so that also is about ₹40 crores,”she said.
On a consolidated basis, there was an issue with a road SPV (major maintenance) that was taken into account. “And in one of our coal connectivity projects, this is Chhattisgarh, CERL – the project has been incurring operational losses. Some part of the project is yet to be constructed. So once that is constructed, and we have the full traffic there, then we shall probably not have losses going forward, maybe another two years down the line,” the Director Finance said.
CMD Gupta said, the company continues to diversify with it tapping into Kavach orders and bidding for new tenders. While it has also started looking into the Railway signalling vertical as a new business opportunity.
According to him, every Kavach tender is of the order of ₹250 – 300 crore.
“(A) ₹253 crore (order) we got for SWR (South Western Railway) and we have already bid in three more tenders. They are under evaluation. And the next phase of tendering would be available in July or August. Next wave of tendering again for Kavach will come. So, it’s an ongoing process, and whatever tenders are getting finalized, the execution is taking place,”he said.
It had previously won a ₹194 crore contract from the Central Railway to set up 665 Kavach towers.
A foray into new verticals are seen as margin accretive, specially when competition in the EPC segment is high. And the company, has flagged high competition as a reason for “squeezed” margin guidance.
“…. there is a slightly strain on the margins because of the increased competition and many of the bids being taken up at a very, very competitive rate. So there would be an overall decline in the range of about 0.5 – 1 going forward,”Director Finance, Advani said.
Published on June 5, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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