The Hindu Business Line : Ircon `builds' record turnover

Based on Ircon's consistent profitable performance during the past few years, the Ministry of Railways has, with effect from May 15, 2005, upgraded it from a Schedule B to a Schedule A company.

With works on hand worth Rs 5,000 crore, Ircon International aims to register its highest-ever turnover of Rs 1,600 crore this fiscal.

With this, the company would improve upon its previous high turnover by about Rs 500 crore. The record high turnover was registered by Ircon in 2005-06 at Rs 1,100.48 crore, with a profit after tax of Rs 77.62 crore.

Works in hand

Now, Ircon expects to achieve a turnover of Rs 2,000 crore "at least a year before 2010". The Railways' public sector unit (PSU) had earlier targeted touching the Rs 2,000-crore turnover mark by 2010.

"We have works in hand valued at Rs 5,000 crore as on April 1. The works are spread over three years," Mr B. S. Kapur, Managing Director, Ircon, told Business Line.

On some of the large orders bagged by Ircon, Mr Kapur said, "We have recently bagged a project from the National Highways Authority of India (NHAI), valued at Rs 120 crore, that involves six-laning a 20-km stretch near Panipat."

Consistent performance

The PSU is also finalising negotiations with Rail Vikas Nigam Ltd (RVNL) for building the third rail line between Ghaziabad and Panipat. He added, "We would do the Rs 225-crore project along with Ganon Dunkerley. Our share in the project is about 60 per cent."

Ircon has started work on the Rewari-Ajmer gauge conversion project awarded by RVNL "The 295-km gauge conversion project is the longest stretch to be awarded by the Railways to a single company at one go. The project, estimated to cost about Rs 160 crore, is to be completed by August 2007," said Mr Kapur.

Based on the company's consistent profitable performance the past few years, the Ministry of Railways has, with effect from May 15, 2005, upgraded Ircon from a Schedule B to a Schedule A company. "This will help us retain better talent within the organisation as the salary scales of the company's employees now become better," explained Mr Kapur.

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Ircon `builds' record turnover