IRCON shares hit 52-week high after company's Q1 profit jumps 30%

The Railway Ministry recently gave the in-principle nod for the closure of a JV company, Bastar Railway Private Limited (BRPL). IRCON's stake in BRPL was 26 per cent.

Prime Minister Narendra Modi recently laid the foundation stone for the redevelopment of 508 railway stations across the country via video conferencing. (Image credit: Reuters)

Shares of IRCON International on Wednesday rose as much as nearly 10 per cent each to clock a 52-week high of 110.20 on the NSE. The significant jump in the shares came a day after the company reported a 30 per cent rise in its profit after tax in its first-quarter results. The shares settled at Rs 106.45 apiece, up 7 per cent on the NSE.

Why Ircon International Ltd is in news

The Railway Ministry recently gave the in-principle nod for the closure of a JV company, Bastar Railway Private Limited (BRPL). IRCON's stake in BRPL was 26 per cent.

After the go-ahead, the assets and liabilities of BRPL will also be transferred to the Ministry of Railways. The ministry said in its statement, "Ministry of Railways will take over the project, hence the joint venture is being closed."

In a separate development, Prime Minister Narendra Modi recently laid the foundation stone for the redevelopment of 508 railway stations across the country via video conferencing.

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