Latest news with #IRCON
Hindustan Times
2 days ago
- Business
- Hindustan Times
Financial turnaround of Indian Railways
he first public railway line utilising steam locomotives for passenger transport was established in England. George Stephenson's rail system, the Stockton and Darlington Railway, opened on September 27, 1825, in England. Rail technology was quickly adopted in India, with its first journey commencing in 1853 and covering 34 km. Indian Railways has since leaped forward in its operations with enhanced safety systems, high-capacity loco systems (12,000 HP), passenger-friendly coaches, and various types of wagons, most of which are indigenously developed. Railways currently employ 1.3 million people. At Independence, Railways had 57,000 route km (RKM) of track, with less than 1% electrified and 50% broad gauge and, while the rest were meter and narrow gauge. Currently, Railways possess 69,000 RKM, with 90% of its routes electrified. At the time of Independence, India did not manufacture locomotives domestically at a commercial scale. All locomotives in use were imported, primarily from Britain, Germany, and the US. India soon began locomotive manufacturing in 1950 itself. Now, railways operate, India's first semi-high-speed, fully indigenous electric train the Vande Bharat Express, designed and manufactured under the Make in India initiative. Many freight terminals have been developed as Gati Shakti Terminals. Railways have also made significant digital advancements, such as online passenger and freight systems, with various operational activities, especially real-time train tracking, being digitalised. Railways have world-class PSUs, manufacturing units, including RVNL, IRCON, IRCTC, ICF, and RITES. We now have world-class railway stations developed through PPP, for example, at Rani Kamalapati Railway Station in Madhya Pradesh and Gandhinagar, with amenities comparable to modern airports. Additionally, 1,300 stations are in the pipeline for redevelopment under the Amrit Bharat Schemes, with mixed public-private funding. The revenue expenditure in Railways during the financial year 2023-24 was ₹2,52,833 crore against revenue receipt of 2,56,093 crore. The revenue surplus was ₹3,260 crore. The capital expenditure from the budget in 2023-24 was ₹2,62,216 crore. The accompanying graphs depict net revenue, working expenses, and operating ratio (the percentage of revenue spent on operating expenses). Railway is currently not able to invest from its earning for network expansion, station developments, reliant on budget grant from central government. Source: Source: Graph Indian Railways' earnings are not in harmony with the capital deployed by the government. The incremental capital output rato is 20 is the ratio of change in capital to change in revenue, which signifies poor financial return for railways that means if we invest 20 rupees we are only getting output Rs. 1. Railways should aim to achieve a better incremental capital output, needs to earn a minimum of ₹7,000 crore per year (by rationalising pricing of freight, passenger, maximising non-fare revenue and reducing expenses) to bring down the ratio from 20 to four in line with the economy. Railways should able to function as business entity. Success examples from certain countries like China, France, and the US reveal that separation of operations & fixed assets, expanding marketing, improving governance, citizen-centric approach as well as autonomy in decision making, will lead to better profits. Some global examples are stated below: BNSF Railway Company (Burlington Northern Santa Fe) is one of the largest freight railroad networks in North America, headquartered in Texas. It was created in 1995 through the merger of Burlington Northern and the Atchison, Topeka and Santa Fe Railway. In 2010, BNSF became a wholly owned subsidiary of Warren Buffett's Berkshire Hathaway implemented a series of reforms that significantly enhanced its operational efficiency, service quality, and profitability . BNSF prioritised network rationalisation , removing redundant routes and focusing on high-demand corridors. Net income increased from $ 1.7 billion to $ 6 billion within five years. BNSF prioritised network rationalisation removing redundant routes and focusing on high-demand corridors. Net income increased from $ 1.7 billion to $ 6 billion within five years. The Chinese government began separating government functions from enterprise management, leading to the establishment of China Railway Corporation in 2013 (later restructured as China State Railway Group in 2019). This allowed railways to operate more like commercial entities with a focus on profitability and efficiency. A major reform thrust was the massive expansion of high-speed rail (HSR), starting in the mid-2000s, which turned China into the global leader in HSR technology and network size (HSR 45,000 RKM. Addition, government introduced market-oriented mechanisms, allowing private and local capital into railway construction and services. Railway investment was re-structured to rely more on bond financing and public-private partnerships (PPPs) rather than only State funding. In addition, incentives to performing railway zones caused increased outputs. Telescoping pricing of Railways from July 1 states that no increase up to 500 km in ordinary class; increase of ₹5 for distance 501 to 1500 km and ₹10 for distances up to 2,500 km and ₹15 for distance slab 2,501 to 3,000 km. This hike may add additional revenue less than 2 %. There is scope to increase fare much higher percentage due to healthier economy and poverty reduction. Railways should be able to compete with air transport, especially by introducing high speed trains quickly which would reduce congestion at airports and also attract throughputs to railways in turn additional revenues. Railways should also generate additional income from their manufacturing units, non-fare revenues, unbundling non-core activities, real estate development, and network expansion, implementation of Rail Development Authority will certainly attract private players. The establishment of an integrated transport department to help prioritise projects and distribution of throughput effectivity, establishing a unified transport regulator, will help the transport sector grow faster and healthier and may attract private parties in operation, investment and maintenance. Ballooning capital expenditure to Railways from the budget is a matter of concern. The above cited reforms may help Railways to generate additional revenues and shall become self-reliant. Source: Ministry of Railways This article is authored by M Vijayakumar, joint adviser, NITI Aayog, New Delhi.
&w=3840&q=100)
Business Standard
21-07-2025
- Business
- Business Standard
Ircon International share price increases 4% on multiple deal wins; details
Ircon International share: Ircon International share was buzzing in trade on Monday, July 21, 2025, with the stock rallying up to 4.30 per cent to hit an intraday high of ₹195 per share. Around 1:10 PM, Ircon International share price was trading 2.01 per cent higher at ₹190.70 per share. In comparison, BSE Sensex was trading 0.40 per cent higher at 82,084.18 levels. Why were Ircon International shares buzzing in trade today? Ircon International share price was in focus today after the company announced securing multiple infrastructure project contracts. Firstly, Ircon International Limited received a Letter of Award (LoA) from Rail Vikas Nigam Limited (RVNL) for an infrastructure project in Madhya Pradesh. The contract has been awarded to a joint venture (JV) between IRCON (70 per cent share) and JPWPL (30 per cent share). The scope of the work includes the construction of roadbed, minor bridges, buildings, and installation of track (excluding the supply of rails, sleepers, and thick web switches), along with electrical, signaling, and telecommunication (S&T) works. These civil engineering and general electrical works will be carried out in connection with the new broad gauge (BG) railway line between Pipariya (Km 82100) and Budni (Km 180000), under the Bhopal Division of the West Central Railway in Madhya Pradesh. The contract is classified as a domestic item rate contract, and the total duration for execution is 36 months, along with a 6-month defect liability period. The total contract value is ₹755.78 crore, out of which IRCON's share amounts to ₹529.04 crore. Secondly, Mumbai Metropolitan Region Development Authority (MMRDA) has awarded a contract to Ircon International for the execution of works related to the Mumbai Metro Line 5 (Package-2). The scope of the contract involves detailed design, manufacturing, supply, installation, integration, testing, and commissioning of the 220 kV receiving substation, including 220 kV, 33 kV, and 25 kV cabling work. Additionally, the project covers a 25 kV overhead catenary system (OCS) along with switching stations, auxiliary substations (ASS), and complete SCADA system integration. The awarded contract also includes electrical and mechanical works, lift and escalator works for parts of the main line, stations, and the Kasheli Depot. The total duration for the contract execution is 108 weeks, followed by 2 years of Defect Liability and Maintenance Period (DLMP), and an additional 5 years of comprehensive maintenance thereafter. The contract has been awarded as a domestic work contract, and its total value stands at ₹471.29 crore, inclusive of taxes. Lastly, Ircon International has been awarded a contract by the Mumbai Metropolitan Region Development Authority (MMRDA) for the execution of key systems works under Mumbai Metro Line 5. The awarded contract pertains to CA-233, Line-5, Package-2, and includes the design, manufacture, supply, installation, integration, testing, and commissioning of the power supply and traction system. It also covers lift and escalator works, along with 2 years of Defect Liability Maintenance and 5 years of Comprehensive Maintenance. The scope of work includes Electrical and Electromechanical (E&M) works, as well as systems for the Electrical and Electromechanical Interface (EEEI) of the Mumbai Metro Rail Project of MMRDA. The total contract value is ₹642.44 crore, excluding taxes. The project is expected to be executed over a period of 104 weeks, followed by 2 years of Defect Liability Maintenance and 5 years of Comprehensive Maintenance after the completion of the defect liability period. About Ircon International Established in 1976 under the Indian Companies Act 1956 by Indian Railways, Ircon International Limited (Ircon) is an engineering and construction corporation specialising in transport infrastructure. The company specialises in turnkey construction services, including railways (new lines, rehabilitation/conversion, stations, bridges, tunnels, signalling, electrification, and locomotive leasing), highways, EHV sub-station projects, and metro rail systems. Over the years, it has diversified into various segments of transport and infrastructure development. The market capitalisation of Ircon International is ₹18,043.7 crore, according to BSE. The company falls under the BSE 500 index category.
News18
21-07-2025
- Business
- News18
IRCON Share Price Rises 4% Amid Market Volatility; Here's What's Fueling The Upside
Last Updated: Railway PSU stock IRCON International surged over 4 per cent in morning trade on the BSE on Monday IRCON Share Price: Railway PSU stock IRCON International surged over 4 per cent in morning trade on the BSE on Monday, July 21, defying broader market weakness. The stock opened at Rs 192.10 compared to its previous close of Rs 186.95 and rose 4.30 per cent to hit an intraday high of Rs 195. By around 10 AM, IRCON was trading 2.46 per cent higher at Rs 191.55. The rise in IRCON's share price came after the company announced fresh order wins from Rail Vikas Nigam Ltd (RVNL) and the Mumbai Metropolitan Region Development Authority (MMRDA). Post market hours on Friday, July 18, IRCON said it had received a letter of award for a significant infrastructure project floated by RVNL. The project was bagged in joint venture with JPWIPL, with IRCON holding a 70 per cent stake and JPWIPL the remaining 30 per cent. The Rs 642 crore order involves the design, manufacturing, supply, installation, integration, testing, and commissioning of systems such as power supply and traction, E&M, lifts, and escalators for Mumbai Metro Line 6 (Swami Samarth Nagar to Vikhroli). The scope also includes five years of comprehensive maintenance following a two-year defect liability period. IRCON appears poised to end a three-day losing streak with today's gain. However, the stock has faced selling pressure in 2024, with a decline of 12 per cent year-to-date. On a monthly basis, IRCON is down over 5 per cent in July, after climbing more than 6 per cent in June and 25 per cent in May. The stock hit a 52-week low of Rs 134.30 on March 3, after reaching a 52-week high of Rs 329.50 on July 19 last year. The share touched a 52-week high of Rs 327.95 and a 52-week low of Rs 134.30 on 23 July, 2024, and 03 March, 2025, respectively. Currently, the stock is trading 41.15% below its 52-week high and 43.71% above its 52-week low. The market capitalisation of the company stands at Rs 18,151.95 crore. view comments First Published: July 21, 2025, 12:11 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
21-07-2025
- Business
- Mint
IRCON share price: Railway PSU stock jumps over 4% despite weak Indian stock market; here's why
A railway PSU stock, IRCON International, jumped over 4 per cent in morning trade on the BSE on Monday, July 21, in an otherwise weak market. IRCON share price opened at ₹ 192.10 against its previous close of ₹ 186.95 and jumped 4.30 per cent to an intraday high of ₹ 195. Around 10 AM, the PSU stock traded 2.46 per cent higher at ₹ 191.55. IRCON share price are rising after the railway PSU company received orders from IRCON and the Mumbai Metropolitan Region Development Authority (MMRDA). After market hours on Friday, July 18, IRCON announced that it had received a letter of award for a project floated by RVNL. The company bid for the project in a joint venture with JPWIPL, holding a 70 per cent stake, while JPWIPL held the remaining 30 per cent. The RVNL project is valued at nearly ₹ 756 crore, with IRCON's share of ₹ 529 crore. IRCON has received two separate orders from the Mumbai Metropolitan Region Development Authority, worth ₹ 471.30 crore and ₹ 642.44 crore, respectively. The ₹ 471 crore order is for the design, manufacture, supply, installation, integration, testing and commissioning of 220 kV receiving substation, including 220 kV, 33kV & 25kV cabling work, complete 25kV overhead catenary system along with switching station, 33kV auxiliary power distribution system and complete SCADA system, electrical and mechanical works, lift and escalator works for part of main line, stations and Kasheli Depot of Mumbai Metro Rail Line 5 project of MMRDA, including five years of comprehensive maintenance after two years of defect liability and maintenance period. The ₹ 642 crore order is for the design, manufacture, supply, installation, integration, testing, and commissioning of power supply and traction, E&M, lifts, and escalators, including five years of comprehensive maintenance after two years of defect liability maintenance period of line 6, from Swami Samarth Nagar to Vikhroli, of the Mumbai Metro Rail Project of MMRDA. (This is a developing story. Please check back for fresh updates.)
Indian Express
20-07-2025
- Business
- Indian Express
Share price under Rs 200: Multibagger railway stock secured over Rs 1600 crore order last week
Multibagger railway stock order win: A multibagger railway PSU stock secured back-to-back orders last week, according to exchange filings. The total value of these new contracts exceeds Rs 1,600 crore. Can you guess which one? Here's a hint – as of July 20 (NSE data), this railway company has a market capitalisation of Rs 17,563.19 crore. This railway company is none other than IRCON International Limited. IRCON is a navratna company under the Ministry of Railways. Last week (July 14-18), IRCON bagged three new orders. These are as follows: In an exchange filing on July 18, the company said, 'Mumbai Metropolitan Region Development Authority has awarded the work to Ircon International Limited for CA-233, Line-6, Package-2: Design, Manufacture, Supply, Installation, Integration, Testing and Commissioning of Power Supply and Traction, E & M, Lifts & Escalators including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability Maintenance Period of Line 6 [Swami Samarth Nagar to Vikhroli (EEH)] of Mumbai Metro Rail Project of MMRDA.' The project cost is Rs 642,44,02,451.34. In a separate filing, the railway company said, ' Mumbai Metropolitan Region Development Authority has awarded the work to Ircon International Limited for CA-239, Line-5, Package-2: Design, Manufacture, Supply, Installation, Integration, Testing And Commissioning of 220 kV receiving Substation Including 220 kV, 33kV & 25kV Cabling Work, Complete 25kV Overhead Catenary System along with switching station, 33kV Auxiliary Power Distribution System Including 33/0.415 kV Auxiliary Sub-Station (ASS) And Complete SCADA System, Electrical and Mechanical works, Lift & Escalator Works for part of Main Line, Stations & Kasheli Depot of Mumbai Metro Rail Line 5 Project of MMRDA Including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability and Maintenance Period.' The project cost is Rs 471,29,72,820. In a filing on Friday, the company said, ' IRCON has been awarded with Letter of Award for the project floated by RVNL (Participated in this bid in JV mode with M/s JPWIPL (i.e., IRCON – 70% & JPIWL – 30%).' Here the total project amount is Rs 755,78,21,993.63 (IRCON Share – Rs 529,04,75,395.53),' the company said. Shares of IRCON closed in red on Friday (July 18). The PSU railway stock settled at Rs 186.74 apiece, down 1.60 per cent on NSE. IRCON International Limited is a component of the BSE 500. According to the BSE analytics (as of July 20), shares of IRCON gave negative returns in the last 1 week and 2 weeks, by 2.20 per cent and 6.27 per cent, respectively. Shares of the PSU railway stock also fell in the last 1 year by 40.25 per cent. However, in the past 2 years, 3 years, and 5 years, shares of the company rose 116.15 per cent, 405.27 per cent, and 307.03 per cent, respectively. This year, IRCON paid a dividend of Rs 1.65 in February. Last year, the PSU railway stock declared total dividends of Rs 3.10. IRCON issued bonuses in the ratio of 1:1 for the equity shareholders.
