Ircon International Limited aims to clock a revenue of about ₹6,000 crore next fiscal (2021-22), which is 20 per cent higher than the turnover of fiscal 2020. Contributing to revenue would be the railway connectivity projects in Jammu and Kashmir, and Sikkim.
The revenue in present fiscal, which was hit by Covid-19, is expected to be 10 per cent lower, added SK Chaudhary, CMD, Ircon International, at a press meet. “Movement of labourers across States in the country was hit and international projects suffered as flight movements stopped, which affected the projects,” said Chaudhary.
Ircon, which is developing Safdarjung railway station project in New Delhi, , is also eyeing the New Delhi railway station project for which it has tied up with an Arabian Construction Company that will fund the project.
He added they have always bid with sufficient margin (of 7-8 per cent) for projects and refrain from aggressive bidding to bag projects. The CMD also said that station development fee will be a very small chunk of the overall (New Delhi station) project, which will get more revenue from real estate development.
‘Conflict of interest’
Ircon did not bid for Mumbai station redevelopment as the project is offered by Indian Railway Station Development Corporation (IRSDC), a company in which Ircon has stake. “Bidding for this project would have meant conflict of interest,” the CMD said. It is also bidding for the high-speed rail project.
The company, originally formed to undertake rail projects internationally, now clocks about 15 per cent of revenue from international projects. It bagged over ₹4,000 crore of orders this year and expects to spend ₹8,000 to ₹10,000 crore next year as capital expenditure.