Shares of IRCON International Ltd. surged 5%, reaching a day’s high of Rs 218.20 on 8th October, after the firm disclosed that Apex Buildsys Ltd., a contractor for the company, has initiated a Rs 38.71 crore claim currently under arbitration as of Monday.

Apex Buildsys Limited, a company contractor, has initiated claims against IRCON International, which are currently being adjudicated by an Arbitration Tribunal.

The claims are related to construction work at the Rail Coach Factory in Raebareli and involve issues such as liquidated damages deductions, price variation clauses (PVC), and overhead charges.

The firm reported a 17% decline in consolidated revenue for the April-June quarter, with topline revenue at Rs 2,287.1 crore compared to Rs 2,763.8 crore in the same quarter last year.

Lower expenses increased net profit by 19.5% to Rs 224 crore. EBITDA remained flat, decreasing by 2% to Rs 250.6 crore, while the EBITDA margin improved by nearly 200 basis points to 11% from 9.2% last year.

As of June, IRCON’s total order book was Rs 26,034 crore. Of this, Rs 20,420 crore was from the railway segment, Rs 5,531 crore from highways, and Rs 83 crore was classified as “others.”

At 11:47 AM, the shares of IRCON International were trading 5.04% higher at Rs 217 on NSE.

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