IRCON

NSE : IRCON
ABOUT

The company's current liabilities during Chairman and MD : SK Chaudhary

FY18 stood at Rs 476 billion as compared to
Rs 458 billion in FY17, thereby witnessing SALES
an increase of 3.9%. Long-term debt stood 4500
4000
at Rs 97 billion as compared to Rs 71 billion
3500
during FY17, a growth of 35.7%. Current 3000
assets rose 12% and stood at Rs 371 billion, 2500
2000
while fixed assets rose 10% and stood at Rs
1500
422 billion in FY18. Overall, the total assets 1000
and liabilities for FY18 stood at Rs 897 500
0
billion as against Rs 803 billion during FY17, 2014 2015 2016 2017 2018
thereby witnessing a growth of 12%.

FINANCIAL HIGHLIGHT
VALUATIONS
➢ Ircon was listed on the September
28th, 2018. PROFITABILTY

➢ Since the listing , Revenues have EBIT MARGIN 15.75%

gone up by 26.4% for the 3 months. PAT MARGIN 10.22%
➢ Promoter holding stands at ROE 10.95%
89.18%. ROA 3.22%
➢ Company has had a poor
ROCE 7.66%
compounded growth at -1.27%.
LEVERAGE
DEBT-EQUITY 0.85
DEBT-ASSET 0.25
INTEREST COVERAGE 9.82
VALUATION
PRICE-BOOK VALUE 0.98
PRICE EARNING 9.08
INTERPRETATION Moreover company PE is above the industry PE
which assures that company has high potential
PROFITABILITY
to grow.
EBIT margin : EBIT has been performing below
PROFIT AND LOSS
the industry average .This may be because of
gradual increase in sales but the earnings not
growing upto the expectation.

PAT margin : PAT margin is above the peer

companies but has reduced gradually due to
low Ebit.

ROE : Returns on the equity has remained

same for past three years and has seen not
much changes. While there are peers having a
negative ROI, peers like AGI infra and MEP
infra. Exist that have an ROE above IRCON.

ROA : Roa has been reducing slowly and

remains at 3.22%. Assets have the potential to
perform better.

ROCE : Returns with respect to capitals have

reduced as per previous years. Company has
the potential to earn further returns from the
source.

LEVERAGE
Debt - Equity : D-E ratio was 0 till 2017 and now
stands at 0.85 as per 2018.
Debt-Asset : Debt asset ratio is lower as
compared to its peer. 0.25 Is low which is good
for a company.
Interest Coverage : Interest coverage ratio of
the company has reduced drastically from
19.84 in march 2014 to 9.57 in march 2018. In
comparison to its peers IRCON has a better
Interest coverage ratio.
INTERPRETATION
➢ Revenue from operation has increased
31.3%.
➢ Other income has reduced by 21%.
➢ Employee benefit expenses have
increased by 53%.
➢ Adjusted PAT has increased by 7.18%
as per 2017.
➢ Revenue for 6 months ending 31st
December 2018 stands at 21781.8.

VALUATION

PRICE-BOOK VALUE : Stocks are undervalued

at a price-Book value ratio of 0.98. This is
positive for the company.

PRICE EARNING : Price earning ratio is at 9.08.

This shows that an investor is ready to pay 9.08
times for a Re.1 earning. This shows that the
investors are optimistic about the company.
 BALANCE SHEET
Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Interpretation
EQUITIES AND
LIABILITIES
➢ The borrowings have increased in
SHAREHOLDER'S 2018 from 0 in 2017 .This means that
FUNDS
Equity Share Capital 94.05 98.98 19.8 19.8 19.8 till 2017 company had set a good
Total Share Capital 94.05 98.98 19.8 19.8 19.8
3,667.7 3,717.9 3,619.1 3,433.5 2,922.2
record of repaying the borrowings.
Reserves and Surplus
0 2 2 5 3 ➢ Total Assets have increased by 38.4%.
Total Reserves and 3,667.7 3,717.9 3,619.1 3,433.5 2,922.2
Surplus 0 2 2 5 3
Total Shareholders 3,761.7 3,816.9 3,638.9 3,453.3 2,942.0
Funds 5 0 2 5 3
Minority Interest 0 19.62 21.85 21.28 20.32
NON-CURRENT
OVERVIEW
LIABILITIES 1. With Ircon expanding even to
3,203.0
Long Term Borrowings 0 0 0 213.33
8 countries like Sri lanka shows a
Other Long Term 1,236.8 1,956.0 1,081.3
Liabilities 9 5 0
188.01 490.72 potential positive growth for the
Long Term Provisions 75.3 76.23 149.78 338.5 461.86
Total Non-Current 4,515.2 2,032.2 1,231.0 1,165.9
company.
526.51
Liabilities 7 8 8 1 2. With operating Cash flow negative
CURRENT
LIABILITIES in nature, we can say that debt is not
Trade Payables 510.04 360.65 400.38 442.56 591.74
Other Current 3,725.7 2,703.9 2,492.9 1,749.6 1,272.9 being paid off properly.
Liabilities 2 5 2 6 8 3. Company has increased the debt
Short Term Provisions 265.44 298.01 354.27 327.65 819.42
Total Current 4,501.2 3,362.6 3,247.5 2,519.8 2,684.1 more than the increase in the
Liabilities 0 0 7 7 4
Total Capital And 12,778. 9,231.4 8,139.4 6,521.0 6,812.4 Networth.
Liabilities 22 1 1 0 0
ASSETS
4. Since IRCON was listed only in 2018,
NON-CURRENT
ASSETS
earnings cannot be compared with the
Tangible Assets 499.28 452.96 434.57 432.35 165.76 construction industry for the past 5
Intangible Assets 69.17 71.48 71.9 72.11 581.44
Capital Work-In- years.
3.15 2 1.5 1.07 22.09
Progress
Intangible Assets
However for the past year , earnings
960.52 546.58 73.86 15.14 10.72
Under Development for IRCON has not crossed the earnings
Other Assets 0 0 0 0 15.64
Fixed Assets
1,532.1 1,073.0
581.83 520.68 795.65
for the construction industry.
2 1
Non-Current
567.8 530.94 349.47 173.56 193.92
Investments
Deferred Tax Assets
133.87 145.05 211.6 267.52 300.69
[Net]
Long Term Loans And
39.66 78.91 60.61 128.6 562.99
Advances
Other Non-Current 2,877.7
505.03 299.27 298.39 43.88
Assets 2
Total Non-Current 5,151.1 2,332.9 1,502.7 1,388.7 1,897.1
Assets 7 3 8 5 3
CURRENT ASSETS
Current Investments 216.17 249.91 138.02 68.39 176.02
Inventories 140.75 139.34 140.62 114.44 124.19
Trade Receivables 693.76 472.88 510 471.75 778.77
Cash And Cash 4,690.5 4,753.1 4,721.9 3,378.9 2,802.7
Equivalents 4 2 8 9 3
Short Term Loans And
1.91 80.21 1.71 20.47 539.07
Advances
1,883.9 1,203.0 1,124.3 1,078.2
OtherCurrentAssets 494.49
4 1 0 2
7,627.0 6,898.4 6,636.6 5,132.2 4,915.2
Total Current Assets
5 8 2 6 7
12,778. 9,231.4 8,139.4 6,521.0 6,812.4
Total Assets
22 1 1 0 0