Ircon International Ltd - Stock Valuation and Financial Performance

Ircon International Limited (IRCON) is a government company incorporated by the Central Government (Ministry of Railways) on 28th April, 1976 originally under the name Indian Railway Construction Company Limited. It was set up to utilize the Indian Railway's experience in helping developing nations of the world to install or maintain their own railways and also to execute railway projects for the private sector. It is the leading turnkey construction company in the public sector known for its quality, commitment and consistency in terms of performance. IRCON has widespread operations in several states in India and in other countries (Malaysia, Nepal, Bangladesh, Mozambique, Ethiopia, Afganistan, UK Algeria and Sri Lanka) Now.

IRCON is a specialized construction organization covering the entire spectrum of construction activities and services in the infrastructure sector. However, railway and highway constructions including EHP sub-station engineering and constructions, and also special structures, MRTS, etc. are the core competence areas of IRCON. The company operates not only in a highly competitive field but also in difficult terrains and regions in India and abroad and is an active participant in prestigious nation building projects. IRCON has so far completed more than 270 infrastructure projects in India and more than 90 projects across the globe in more than 20 countries. The company's specialization is in railways, railway electrification, signal and telecommunication, construction of roads, highways, commercial, industrial and residential complexes, airport runways, airport constructions, leasing of locomotives, mass rapid transit system etc.

Busuiness activities:

1) Railway:- Services offered cover entire spectrum of activities including construction of new railway lines,rehabilitation/ conversion of existing lines, station buildings and facilities, bridges, regirdering of railway bridges, tunnels, signaling and telecommunication networks, railway electrification, wet leasing of locomotives, setting up of production units for manufacture of rolling stock, maintenance depots/ workshops, concrete sleepers and track components on turnkey basis. A number of important and prestigious projects have been completed successfully in the railway sector, at home and abroad, including construction of more than 2500 km of new rehabilitation of existing track in India and abroad

2) Highways:- Usage of fully batch type automatic Hot Mix Plant for ensuring quality of bituminous production, Usage of fully automatic high capacity concrete batching plant for ensuring quality of concrete production, construction of bituminous pavement by using full width (9 meter), sensor paver, construction of concrete pavement by using full width (9 M) paver for dry lean concrete and full width slip form paver for pavement quality concrete, usage of high capacity, cone crusher for quality control of aggregates, usage of WMM sensor paver at base course level for achieving workmanship and riding quality of finished road, application of innovative and appropriate methods for execution of projects under extreme topographical and climatic condition.

3) Bridges/Flyovers:- IRCON has got wide range of experience in constructing bridges and flyovers. They are â€¢  With pre-stressed concrete using the most modern type of launching truss – Pre-stressed pre-cast continuous box girders on curve, bridges Viaducts (RCC / Pre-Stressed concrete), Elevated portion for the MRTS, Bridge works on open foundation in rocky strata, Bridges on Well Foundation, etc, Construction of viaducts with 70 M height, Construction of flyovers on busy intersections in India and Abroad , Construction of Bridges in very high terrain of Jammu & Kashmir, Cable Stayed Bridge.

4) Buildings:- Services offered cover entire spectrum of activities including construction of all kinds of buildings (e.g. Commercial, Industrial, Airport Hangers, Station Buildings and facilities, Hospitals, Business centers, Setting up of Production Units for manufacture, Workshops / Warehouses etc.), Installation of Air conditioning systems and Electrification.

5 )Electricals:- Services offered cover entire spectrum of activities including Turnkey Project Management including Design, Supply, Erection, Testing & Commissioning, Pioneer in Railway Electrification works including Traction Sub-stations, In-house design capability for Grid Sub-stations of voltage class upto 400 kV , Customized Software package for design of Railway Electrification works , Simulation studies for AC Distribution Network.

6) Signalling & Telecom Project:- IRCON has executed a large number of electronic (Solid State) Interlocking and relay based Interlocking signalling installations in Iraq, Iran, Malaysia, Zambia and Bangladesh and India. It has also successfully executed Telecommunication works for Turkish, Malaysian and Zambian & Indian Railways.Currently Ircon is executing projects in Malaysia, Iran, Sharjah (UAE) and India.7) Mechnical :- Following are the main activities that are covered by Supply of Modern, light weight passengers car to suit Railway Specification & needs, Supply Of diesel Electric Locomotives to suit customers Specification and operating requirement, leasing& maintenance of diesel locomotives ,Supply of plant & machinery for workshop

Awards & Achievements:-

1) IRCON International Limited is a central Public Sector Enterprise incorporated as a government company under the Companies Act. 1956. IRCON was set up to utilize the Indian Railway's experience in helping developing nations of the world to install or maintain their own railways and also to execute railway projects for private sector.

2) The company was the first to get the ISO-9001:2000 certification from TUV Germany for its full range of construction activities. It is the only construction PSU awarded with the Miniratna status by the Government of India.

3) The company's specialization is in railways, railway electrification, signal and telecommunication, construction of roads, highways, commercial, industrial and residential complexes, airport runways, airport constructions, leasing of locomotives, mass rapid transit system etc.

4) IRCON has been ranked the 3rd largest construction company of India in October 2004 on the occasion of Construction World-NICMAR (National Institute of Construction Management and Research) Award 2004. As per Engineering News Record (ENR) of USA (August 22/29, 2005 edition), it is seen that amongst the 'year 2005' Top 225 construction contractors of the World, the average percentage of domestic profitability is only 5.5% and if this is taken as a benchmark, IRCON is ahead of the top companies as its domestic profitability is 6.90%.

5) The company has completed 280 landmark infrastructure projects in India and 90 projects across the globe in 21 countries namely, Algeria, Angola, Bangladesh, Indonesia, Iran, Iraq, Israel, Italy, Jordan, Lebanon, Malaysia, Nepal, Nigeria, Saudi Arabia, Syria, Tanzania, Turkey, United Kingdom, Zambia. The company has also taken up projects in Mozambique and Ethiopia.

6)I RCON has been a consistent winner of the Highest Foreign Exchange Earner Award in the construction sector.

7) From Engineering Export Promotion Council, the company has won 18 Awards of Excellence, including the All India Trophy for the Top Exporters in the category of Merchant Exporters in recognition of the outstanding contribution to engineering exports.

8) From Project Exports Promotion Council of India, IRCON has won 42 Awards of Excellence, including, The Award for Maximum Foreign Exchange Earned and Repatriated to India from Overseas Service Contracts.

9) IRCON was a nominee to the prestigious Internationally acclaimed Bentley Empowered Awards for Civil Rail Design 2004 for strategic Planning, design and construction of a Mountain Railway (Kashmir Valley Rail Project).