Shares of Ircon International Ltd. dropped 9% today, reacting to disappointing Q3 earnings results. Despite reporting a 20.37% YoY increase in Profit After Tax (PAT) to Rs. 883.29 crore and an 18.93% rise in operating revenue to Rs. 12,331 crore, the market responded negatively.
One of the concerns was the company’s negative cash flow from operating activities (-Rs. 78.55 crore) and higher cash outflows from investment activities (-Rs. 705.49 crore), down 148.06% YoY. Investors may also be wary of the recent ircon share price decline in stock price, which has dropped 32.03% in the past six months and 19.11% over the last year.
Despite positive revenue and profit growth, the decline in stock price suggests that investors may have been expecting even better results or are concerned about future earnings sustainability and cash flow management.
