IRCON International Ltd — Call Transcript 2025

Feb 17, 2025

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	IRCON/SECY/STEX/124	17th February, 2025
	BSE Limited Listing Dept./ Dept. of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001 बीएसई िलिमटड िल��ग िवभाग / कॉप�रट सवा िवभाग पी. ज. टावस, दलाल �ीट, मबई–400001 Scrip code / ID:541956 / IRCON	National Stock Exchange of India Limited Listing Department Exchange Plaza, Plot no. C-1, G Block, Bandra –Kurla Complex, Bandra (East), Mumbai – 400051 नशनल �ॉक ए�चज ऑफ इिडया िलिमटड िल��ग िवभाग ए�चज �ाजा, �ॉट न सी-1, जी �ॉक, बा�ा-कला कॉ���, बा�ा (पव), मबई-400051 Scrip Code:IRCON

Sub: Transcript of the Q3FY2025 Analyst Conference Call held on Wednesday, 12[th] February, 2025

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation to our letter of even no. dated 7[th] February, 2025, please find enclosed the transcript of the post result Analyst Conference Call held on Wednesday, 12[th] February, 2025 to discuss the financial results of the Company for the quarter and nine months ended on 31[st] December, 2024.

In accordance with Regulation 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Transcript of the Conference Call is also available on the Company’s website at the link https://www.ircon.org/index.php?option=com_content&view=article&id=226&Itemid=643&lang=en which can also be accessed through below mentioned path:

www.ircon.org>> Investor Relations>> Presentation and Earning Calls>> Transcript of the Conference Call held on 12[th] February, 2025 for financial results for the quarter and nine months ended on 31[st] December, 2024.

कृपया उपरो� जानकारी को �रकॉड� पर ल�।

ध�वाद, भवदीया,

PRATIBHA AGGARWAL 2025.02.17 11:31:30 +05'30'

(�ितभा अ�वाल)/ (Pratibha Aggarwal) कंपनी सिचव एवं अनुपालन अिधकारी/ Company Secretary & Compliance Officer सद�ता �./ Membership No.: F8874

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“Ircon International Limited Q3 FY'25 Analyst Conference Call” February 12, 2025

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Management Ircon international limited

Mrs. Ragini Advani : Director Finance Mr. Alin Roy Choudhury : CGM Finance Mr. Ram Kumar Goyal : GM Finance Mr. Sachin Garg : DGM/ Finance/ Investor Relations

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February 12, 2025

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Ircon International Limited

Moderator:

Hello everyone and welcome to Q3 FY’25 Post Result Earnings Call of IRCON International Limited. I am Mike, the moderator for this conference call.

From the management side we have with us Ms. Ragini Advani – Director Finance; Mr. Alin Roy Choudhury – CGM Finance; and Mr. Ram Kumar Goyal – GM (Finance).

Please note that this conference call is being recorded. At this moment all participants are in listen-only mode, later we will conduct a question-answer session. At that time, if you have a question, please press “*” and “1” on your telephone keypad.

I would like to remind you that some of the statements that will be made in today's discussion may be forward-looking in nature. It is subject to several risks and uncertainties and the actual results could materially differ.

I would now like to hand the conference over to Ms. Ragini Advani, Director of Finance, for the opening remarks. After which, you will have the forum open for the interactive QA session. Thank you and over to you, ma'am.

Ragini Advani:

Thank you. Thank you, Myron. Good afternoon, everyone. I am Ragini Advani, Director Finance, IRCON. On behalf of my team, I extend a warm welcome to all of you and thank you for your presence today. For the earnings call for Q3 FY’25, Financial Results as well as presentations have already been uploaded on the Stock Exchange, and I am sure that you have all had the opportunity to review them. A very brief introduction on the financial performance of the company, Q3 results were subdued for the company, primarily due to the completion of some major costless jobs and also we had to make a provision for one of our projects in which we are expecting losses and in our consolidated results, we also have one subsidiary company of ours where a major maintenance provision had to be created, and which was also a one-off item. The company has reported total revenue of Rs. 2613 crores in Q3 FY’25, a part number of Rs. 86 crores which stood parallel to the same period of last year. Core EBITDA has declined to Rs.139 crores vis-à-vis Rs.296 crores in Q3 last year. Earnings per share stand at Rs. 0.92 per equity share in this quarter on a face value of Rs. 2 per share. Order book of the company as at 31st December 2024 stands at about Rs. 22,000 crores of which 53% is on competitive basis and about 47% on nomination basis. In terms of our domestic international split, 90% of our order book is domestic and 10% international. IRCON has 11 subsidiaries and 7 joint venture companies. Now without taking much time, I would like to open the floor for Q&A session. Thank you.

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Moderator:

Thank you. We will now begin the question-and-answer session. Participants who wish to ask a question may press “” and “1” on your touchtone telephone. If you wish to remove yourself from the question queue, you may press “” and “2”. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Shreyans Mehta from Equirus. Please go ahead.

Shreyans Mehta: Ma'am, is it possible to quantify the one-off in the stand-alone which we have taken during the quarter, the provisioning number?

Ragini Advani:

Yes. So, we have taken a Rs. 38 crore loss in one of our projects and we have taken a major maintenance and consolidated one-off maintenance provision of Rs. 45 crore.

Shreyans Mehta: Rs.45 crore. Sure, and even if I adjust for this Rs.38 odd crores, the margins are much below what we used to be having at, say, closer to 6% plus. So, how should one look at the margins going forward?

• Ragini Advani: So, if you talk on a stand-alone basis, what has happened is that apart from the Chennai Metro project where we had to book a loss of Rs.38 crores, we have also had an overall impact on our numbers because one of our major cost-plus jobs, USBRL, which was the Udhampur-Srinagar line, now that line has almost completed and therefore, my revenue and the profit margin from that line has dropped. There has been a strain on my order book. I have not had new orders and since the overall mix of jobs that I won on competition is contributing to revenue now, there has been a decline in my margins and going forward, I do expect those declines to continue for some time. My March results will be decent. But overall, my margins will decline by about 1.5% to 2% from a short-to-mid-term perspective the moment more competitive jobs come in and I start booking revenue out of that and on a consolidated basis, the dip is extraordinary because, as I mentioned, apart from this project loss, we have also taken a maintenance loss provision of Rs.45 crores. It is not a loss, it is a maintenance provision and one of our joint venture companies, Chhattisgarh, their Phase 1, there has been an OPEX loss, which is also significant. If you were to compare the 9-month to 9-month period, it has an adverse impact of Rs.37 crores on my consolidated results.

Shreyans Mehta:

Coming to the second question, how should one look at the FY’25 in terms of the top line and the core EBITDA margins? Secondly on FY’26 What the guidance in terms of revenues and even in order inflows, you know we have been guiding that order inflows will be picking up. But at least till 9 months, we have not seen that.

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Ragini Advani:

So, first, coming to the fact of your guidance for FY’25. FY’25, we should be in the range of Rs.10000 to Rs.11000 crores in turnover.

Shreyans Mehta: And in terms of standalone or...?

Ragini Advani: I am talking about stand-alone. Another Rs.400-500 crores is what you add for consolidated.

Shreyans Mehta: Okay.

Ragini Advani: Yes. In terms of my margins, I see my PAT margin was about 7.12% or a little more, 7.2% last year. I see about half a percent dip there.

Shreyans Mehta: Okay. Ragini Advani: And going forward, FY’26, currently, my order book is on a strain. I will come back to the question on order book later. But having said that, my revenue numbers again should be in the range of Rs.10,000 crores as of now based on the orders that I see right now or which I am expected or I am very confident that I will get. However, my PAT margins will go down further because as I mentioned, right now, my scenarios become very, very different. The market is going on an extremely competitive basis. So, one, the projects that are coming out are of a small size. Two, I see that there are bidders as many as 20 to 25 and three, they are all quoting below the estimate in many of the jobs. So, given all this, my margins, when I get volumes or when I try to get an order, definitely, I will not get them on losses. But yes, I will have to take a hit on my margins. That's why I am saying that going forward, we will have about 1.5 to 2 percent dip from a midterm perspective on our PAT numbers.

Shreyans Mehta: Got it. Sure and then on order inflows?

Ragini Advani:

Order inflows, see, right now in this financial year for nine months or till date, I think we have had an order inflow of about Rs.1700 crores and given the reality that I have just mentioned, I am hopeful of getting another Rs.1000 to Rs.1200 crores by the year end. But I do not see a very significant order book or I cannot commit at this stage that we will have some major order book before March end. But we are making all our efforts. We are trying to continue to get some orders in this kind of a difficult market scenario and let us see how it proceeds. But yes, another Rs.1000 crores is what I would like to say right now.

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Shreyans Mehta: Got it. Got it. Ma'am, just one clarification. So as far as FY’25 is concerned, revenues we are guiding for Rs.10000 in a PAT margin of closer to 6 percent and FY’26, again, top line of Rs.10000 and another 100 business points which is closer to 5 percent PAT margin. Is the understanding right?

Ragini Advani: Yes, that's right. Shreyans Mehta: Got it. I have a couple of more questions. Ragini Advani: And about 5 to 5.5 next year.

Moderator: Thank you. Participants who wish to ask a question, may press “” and “1” on your touchtone telephone. Participants who wish to ask a question, may press “” and “1” on your touchtone telephone. We have the next question from the line of Devajit from RUP Investment. Please go ahead.

Devajit:

Ma'am, I would like to understand if the scenario you are saying that will be hit as there are competition, high competition which is going on. So, are you planning to take more and more orders in volume while the margin will be low or how is it you are planning? Because if you see the condition. Right now, as you are saying, firstly, today if you have checked, the market capitalization of our company has gone down. It has eroded more than 50% of the market capitalization and if you are further saying that there will be a margin hit going forward, I do not understand where exactly will be the thing like. So, as an investor, as a shareholder point of view, what steps the company or the Board of Directors are taking to make the things better for the investors, shareholder, for the company and secondly, going forward, how the order inflow you are planning, ma'am, for the coming financial year? That is more and more orders as a volume part will be going ahead with less margin? And my second question will be any plan for any further bonus share issue or any split in the share to reward the shareholders or any high dividend payout?

Ragini Advani:

I think I will start addressing your questions one by one. The first thing is, yes, the company has given excellent results till now and we are pretty much a company which is very hardworking, has the requisite experience, has the requisite credentials and a very, very professional management. So, there are no doubts of how the company is performing or what its management is looking at. We are definitely wanting to do our best, but there are certain circumstances which are beyond us. Right now, the market is such that even if we want, we cannot get the project at the kind of interest rates that we want or the kind of complexities and the value addition that we want to put into those projects. So, we have no option but to play with the market rules currently and

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Ircon International Limited

there, I do not think I will be deciding whether I am looking at a volume game or a margin game because that period has lapsed. In fact, last time, I thought we could play that game and we were saying we will not compromise on our margins. But now, that situation is also gone. So, I have no option but to take volumes to continue surviving and having some minimum profits in our company and in those volumes when I take, the margins will be hit because that is how the market is right now. So, that is where I am and obviously, given the situation of the company right now, it will not be possible for us to look at any kind of dividend increase. So, it is a long-term company. There are cycles which come. This is a cyclical area where we will need to survive. But growth may not be possible in this time.

Devajit: So, this kind of period you are saying will be for this particular year or going forward for the next financial also?

Ragini Advani: I have already mentioned that it will continue for FY’26. Because see, whatever orders I take, it does not get converted in the same year. Many of those orders, by the time I am given a letter of award, then I start working on it and then I start booking turnover on it. So, typically the impact comes over a period of anywhere between 6 months minimum to a period of about 2.5-3 years. So, I see this going on for some time and therefore, I have lowered my projections even for FY’26.

Devajit : As you said, in this particular quarter, there were certain provisions which have taken place. So, any kind of scenario where you are, any kind of assumptions, or any kind of scenario that we are going forward in the next quarter also, this kind of provision will take place?

Ragini Advani: No, because whatever we were aware of, we have already taken them back.

Moderator: Thank you. We have the next question from the line of Parimal Mithani from Credential Investments. Please go ahead. The participant has dropped off from the call. We move on to the next question on the line of Shreyans Mehta from Equirus. Please go ahead.

Shreyans Mehta: So, ma'am, if I just calculate your guidance in terms of PAT margins, if you are assuming 5% at PAT level, so are we trying to indicate that the core EBITDA level will be closer to, say, 2-3%, because largely other income forms are closer to 3-4%.

Ragini Advani: No, I think my core EBITDA was in the region of about, if I am not wrong, FY’24, it was in the region of 9.2%.

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Shreyans Mehta:

Are you talking about standalone or...?

Ragini Advani:

Consolidated.

Shreyans Mehta: No, I am referring to the standalone margins. We are assuming the guidance which you have given on a standalone 6% PAT margin, and if I remove other income which is closer to 2.5-3%.

Ragini Advani:

So, yes, so 6.39% is what I had last year, my core EBITDA.

Shreyans Mehta: Right.

Ragini Advani: It should take a dip of about 1-1.5% going forward. 1.5%, you can say, yes.

Shreyans Mehta: Got it and at the same time, the other income too would be on an increasing side because the coal SPVs would be starting generating some amount of revenues or throwing some profits from there.

Ragini Advani: So, Shreyans what has happened is that we still have some investments which are happening, construction, so the income would not come from there and as far as coal JVs are concerned, my Chhattisgarh Phase 1 project is continuously giving me losses and is expected to do so for another 2-3 years at least.

Shreyans Mehta: Okay.

Ragini Advani: So, to that extent, other income may not improve as you are thinking because some of this money that I am sitting with, I would be putting in investment and the rest, as I mentioned to you, some of my coal JV projects will be a problem for me for some time. Shreyans Mehta: Got it. Sure, and ma'am, two bookkeeping questions. One, what is our own cash in bank and what are the investments till date we have done and what is the amount pending?

Ragini Advani: So, our cash and bank balance is about Rs. 820 crores, our own cash and bank balance. Shreyans Mehta: Right. Ragini Advani: And as far as investments are concerned, we have done an investment of Rs. 230 crores right now in this financial year, 9-month period in our equity projects, PPP projects and going forward, we will have another Rs. 900 crores to do, out of which you can

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say about Rs. 200 crores in the balance period of this year and the rest would be spread over next year and next to next year.

Shreyans Mehta: Got it. So, basically, our investments would be, say, closer to 2300 plus 230 crores, which is 2500 odd crores as on date.

Ragini Advani:

That is right.

Shreyans Mehta:

And 900 odd is what we have to incrementally infuse.

Ragini Advani: Yes. So, you can say another 700 odd plus 200. So, 2500 plus 700. Yeah. So, it should go around in the range of 3000 plus.

Shreyans Mehta: Got it and ma'am, anything, on the BD or in terms of order inflows, which are the segments we are targeting and where, we could potentially be getting some orders? If you can throw some light on that.

Ragini Advani: So, our core segments remain railway and road. But in roads, what has happened is I am focusing more on EPC projects right now and in railways, though, what I have done is, one, I had decided earlier that I will not go below an order value of Rs. 500 crores. But we have started pitching in for smaller bid values also. The reason being that that is what is coming. So, we decided we will have to be a part of that game and within that, earlier I used to take mostly jobs on consolidated basis, which means I would be in charge for civil plus electrical plus S&T. Now, what I am doing is I am even getting into where I feel it is a pure electrical job or a pure S&T job as well. So, I have started pitching in for all those also. Because the expertise is there, the experience is there. So, that is where we have decided to get into as well.

Shreyans Mehta: Got it and any guidance that you would like to give for FY’26 in terms of order inflows, what are we targeting?

Ragini Advani: Very difficult. Because there are certain orders which I thought should be coming this year, but they have not come and the market is so, so very competitive that it would be very difficult to even predict how many of those we will be able to become L1. So, we will guide you as and when we are more confident about it.

Moderator: Thank you. We have the next question on the line of Gaurav, an individual investor. Please go ahead.

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Ircon International Limited February 12, 2025

Gaurav:	My first question is with regards to the order book. What is the total order book and
	till what time period is it executable?
Ragini Advani:	So, we have an order book right now of 22000 crores and out of that 22000 crores, I
	mean, if you were to do a simple mathematical thing, then it is for about little more
	than 2 years. But what happens is that the order book that we have, some of our projects
	will continue beyond 27, 28 also. So, to that extent, I will have to get more orders to
	get the revenue line of about 10000 crores every year.
Gaurav:	Okay. And what would be the split, ma'am, between domestic and exports,
	international orders?
Ragini Advani:	Domestic and international is 90, 10. 47, 55 is nomination and competition.
Gaurav:	Okay. My second question was that why has the employee cost gone down both on a
	quarterly and 9 month basis? Gone down. Why have they gone down?
Ragini Advani:	Okay, so they have gone down because there are certain things. One, there have been
	some retirements. We have not taken more people because at the end of it, it has to be
	a game of revenue versus cost. Two, we have also done some PF provisioning last year,
	which has now not been required to be done again. So, that is the reason my employee
	cost has gone down.
Gaurav:	Okay. And what would be the total employee count?
Ragini Advani:	Our employee count is about... Regular is about 800 and total is about 1000 plus.
Gaurav:	Okay, thank you. If I may just squeeze in one more question, my last one. Why is the
	other income negative in the international segment?
Ragini Advani:	That is because of some foreign exchange loss that we had to book. It is a book entry.
	It is not an actual loss because of the closing balances of some currency.
Moderator:	Thank you. We have the next question from the line of Periwal from Antique Stock
	Broking. Please go ahead.
Periwal:	Regarding this such a name, pending order book that we have. You mentioned that
	Chennai Metro is at loss... What is the pending?

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Ragini Advani: I know you're asking something about Chennai Metro, but I'm not able to understand the full question. Pending order book of Chennai Metro is about 200 plus crores. But we have taken the total hit right now.

Periwal: Okay and second, have we started executing...

Moderator: Sorry to interrupt, Mr. Periwal. Your audio is not clear. Please go off the speakerphone. Since there is no response, we can move on to the next question. We have the next question from Jaiprakash, an individual investor. Please go ahead.

Jaiprakash: Good evening, madam. Can you hear me? Yes, we can. In the recent budget allocation for the PSU, compared to FY’25 and FY’26, they have reduced 5000 crores, which is their... For the railways, the government, he said, for the PSU allocation, CAPEX, compared to FY’25 to FY’26, they have reduced 5127 crores.

Ragini Advani: Who has reduced 5%? Jaiprakash: CAPEX. Government CAPEX allocation. Ragini Advani: CAPEX allocation by Government of India? Jaiprakash: Yes. So. how do you foresee that for the next 4 quarters, how you are going to get orders? The government itself, is not increasing the CAPEX allocation for the PSU? Which is your direct offline growth?

Ragini Advani: PSU does not get any project on nomination basis. We have to compete in the market and whatever is the CAPEX that is being planned by Government of India in infrastructure projects, railways or roadways, we are like any other private player. So, as and when they bring out the tenders, we plan to bid for them and go ahead and see how many of them we can win.

Jaiprakash: Okay. The government is not willing to spend more on the CAPEX. How you are going to increase your top-line growth? If you don't get opportunities, more opportunities, how do you foresee that? How it is going to affect your margins?

Ragini Advani: The 5% decline is not making too much of a difference to my top-line because it is a huge number that government is spending. So, it is about 2.65 lakh crores is the budget for railways and I think almost a similar amount or more for roadways. So, there is a huge amount still of CAPEX that government plans to spend on projects. Not all projects is what I am interested in. I don't bid for rolling stock and those kind of

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projects. But whatever are the projects relating to my area, there are enough opportunities that will come. That is not an issue. But the point is how many of them I am able to bid in this competitive environment.

Jaiprakash: So, you are optimistic about your next 4 quarters you are going to get more orders?

Ragini Advani: I haven't said that. I have only said that next 4 quarters we will continue to target getting more jobs. But I haven't quantified the number that we will be getting.

Jaiprakash: Okay, fine. My second question is have you completely exit the Chennai Metro or still you are interested with Chennai Metro? Because you said that you have booked loss in this quarter.

Ragini Advani: We are not investing in Chennai Metro. We are doing an EPC project for them. In that project I am going to have losses, which is what I have booked. Out of those projects that I am doing one of my projects is going into losses. And therefore, I have booked a loss on that project.

Jaiprakash: Okay, fine. My third question is in your investor presentation page number 32 that is in your order book you have said that you have 89 crores of others, right?

Ragini Advani: 89 crores of others in the other, order book? Jaiprakash: Yes. Primarily you are in railways and highways in that others you have you are willing to explore any other areas like airport construction that UDAAN Project Government is more interested about because...

Ragini Advani: In airport we have right now only one or two jobs which are PMC and other than that we are doing some civil building set up for MSME industry. These are technical centers that we are going to be setting up for them. So that is where 89 crores of the order book is coming.

Jaiprakash: Okay, fine. Thank you. I wish that next 4 quarters you must try to keep on growth trajectory.

Ragini Advani: Sure. We need wishes from you all. Thank you. Moderator: Thank you. Participants who wish to ask a question may press “” and “1” on your touchtone telephone. Participants who wish to ask a question may press “” and “1” on your touchtone telephone. We have the next question from the line of Dheeraj Kripalani from Avendus Spark. Please go ahead.

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	February 12, 2025
Dheeraj Kripalani:	I was just having one question. What does the current bid pipeline is looking like in
	the railways and the highways projects?
Ragini Advani:	I mean if I was to talk about the bid pipeline it is very, very good. It is about 60,000
	crores but then that by itself has no meaning when you have something like 25 to 30
	people bidding for it and they are bidding less than estimate and also there is a reverse
	auction in it.
Dheeraj Kripalani:	60,000 crores overall including railways and highways both or in the highways only?
Ragini Advani:	Both. In highways I am only looking at EPC.
Moderator:	Thank you. We have the next question in the line of Parimal Mithani from Credential
	Investments. Please go ahead.
Parimal Mithani:	Yes, ma'am. I just wanted to know you had monetization of certain road assets. Have
	they happened or they are not yet in the pipeline?
Ragini Advani:	They are still in the process of approval within Government of India systems.
Parimal Mithani:	It has almost been a long-time ma'am. What is the reason for that?
Ragini Advani:	Well, the reason is that I mean it will not be but I presume there are multiple people
	from whom approvals are required within Government of India and because this is
	something that we are monetizing at our level and not at the level of Government of
	India so the file goes to and fro. There are questions that are asked. There are times
	when they are asked to make the presentation, so it is taking its own time.
Parimal Mithani:	Okay and ma'am in terms of margins that you have alluded that there will be some
	pressure for the next 2 years. How do you see in terms of the improving pos that. You
	see it has been a lot of pressure for 2 years. Regarding the margin pressure that you
	mentioned ma'am in terms of the competitive bidding also getting extensive so how do
	you plan to basically get orders and work to your margin profile basically ma'am?
Ragini Advani:	We won't get it according to our margin profile which is what I have been saying that
	we will be taking it on a margin.
Moderator:	Thank you. We have the next question from line of Jitesh Kothari from Elara Capital.
	Please go ahead.

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February 12, 2025

Jitesh Kothari:

Yeah, I only had one question regarding MSRDC project. We stood L1, almost a year back now. So how are you looking at like receiving the LOA from the government since elections are also over and can we expect the projects to be included soon to our order book?

Ragini Advani: We also wish as you wish that it comes to us as soon as possible but as of now we have no news from there in terms of their expediting it or how or when are they planning to do it even when we have been asking them we have been told that they will take some more time and that is the last news that we have.

Jitesh Kothari:

So ma'am is there any re-negotiation with respect to the pricing of the contracts or that has been the case?

Ragini Advani:

No they have not called us for that.

Moderator:

Thank you. Participants who wish to ask a question may press “” and “1” on your touchtone telephone. Participants who wish to ask a question may press “” and “1” on your touchtone telephone. We have the next question Prerit Bansal, an individual investor please go ahead.

Prerit Bansal: I joined this call a little late. I just have a couple of questions. Firstly relating to margins the revenue which we are booking is relating to an initial order book and this must have been planned to be 8-10% of margin then why we are getting margin as of now on this order book and not in the upcoming order books and what will be the order we are not getting any of the orders and within a couple of years we might lose the current order book completely.

Ragini Advani: So I think you joined late so I will explain again. We have had a problem in terms of getting more orders. I mentioned that the market scenario is such that there are small value packages which are being taken out or being bidded and there are some multiple competitors in the range of about 20-25 and many of these competitors are actually quoting much below the estimate and if we were to in all kind of bids there are all kind of players but if some of them we were to match we will never ever get margins out of those jobs. While we understand the market and we are continuing to put our efforts but at the end of it whatever orders we will get in future, one, there will be a lesser inflow of orders. Two, whatever orders we get in future we will have better margins there in. So I hope that answers your question.

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Ircon International Limited February 12, 2025

Prem Bansal: Ma'am basically others must also be doing something to get the margins. They will not be executing those contract at losses. So what is that which we are not even doing so that we are not being able to execute those kinds of orders? Ragini Advani: Actually that is a very very complex topic for discussion and all I can say or assure you from management’s perspective is that it is a mix and match. Not all C players are serious and a lot of them are doing as a market entry or a credential game. Having said that we know what our costs are. Your company this company is one of the efficient companies when it comes to our total fixed costs that we have other than the orders or the expense for the orders. So to that extent we are deep-diving into it. On a case-tocase basis. There are reasons but I think it will be a little difficult to explain all of it right now. I can assure you that we are doing what best we can do. Prem Bansal: Ma'am our 53% of the order book is on bid basis. The remaining 47% is on nomination basis. So we are not even getting orders on the basis of nomination as well. Ragini Advani: The nomination orders we are executing and in future there is no nomination bids that we are going to get. Prem Bansal: And why so change in this scenario ma'am because currently we have around 10,000 crores of orders. Ragini Advani: This has been a change for the last 3-4 years. Whatever orders you have seen in our order book right now is not coming out of nomination, it is 4 year old. Prem Bansal: So ma'am to remain competitive in such a segment what is next which we should be doing so that we also stand and take some. Ragini Advani: We will take you off the record because the questions that you are asking is more in terms of understanding how we are planning to do nitty gritties in each project and that is something I will not be able to explain over this conference. Prem Bansal: But ma'am that is what the investor is asking as of now because our share prices have declined 50%. We are not getting. Ragini Advani: I will be happy to discuss with you off the line. Moderator: Thank you. Participants who wish to ask a question press “*” and “1” on your touchtone telephone. As there are no further questions I would now like to hand over the conference to the management for closing comments.

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Ircon International Limited

February 12, 2025

Ragini Advani:

Thank you so much. Thank you Myron for moderating the call. I would also like to thank our shareholders, business partners, analysts, and investor friends who have continued to show faith. See the company is fundamentally very strong and there are phases which come in every industry or every company when there are ups and downs. It is a part of our downward journey. We are trying to revive as much as we can. We are delivering good profits. That is where we are. However, having said that we are happy to connect on all the concerns on one-to-one basis if required and for addressing any further queries that you all have. And with this, I conclude today's call and thank you all for the active participation. Thank you so much.

Moderator:

Thank you for joining this call. You may now disconnect your lines. Thank you.

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