State-owned IRCON International Ltd on Monday (October 7) disclosed that Apex Buildsys Ltd, a contractor for the company, has initiated a ₹38.71 crore claim currently under arbitration.

“…this is to inform you that Apex Buildsys Limited, a contractor of the Company, has initiated claims against the Company. The claim is being adjudicated by an Arbitral Tribunal,” according to a stock exchange filing.

The claims stem from the construction work undertaken at the Rail Coach Factory in Raebareli, which included facilities such as wheel, bogie, paint, and machine shops.

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The dispute revolves around issues related to liquidated damages deductions, price variation clauses (PVC), and overhead charges. The arbitration proceedings will be conducted by an appointed Arbitral Tribunal, which will adjudicate the contractor’s claims.

IRCON International reported a 17% drop in its consolidated revenue for the April-June quarter. The topline for the period stood at ₹2,287.1 crore, while the company had reported a topline of ₹2,763.8 crore during the same quarter last year.

Net profit for the period increased by 19.5% to ₹224 crore, aided by lower expenses.IRCON’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat year-on-year, declining by 2% to ₹250.6 crore, while EBITDA margin expanded by nearly 200 basis points to 11% from 9.2% last year.

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For the quarter that ended in June, IRCON’s total order book stood at ₹26,034 crore. Out of this, ₹20,420 crore belonged to the railway’s segment, ₹5,531 crore for the Highways and the remaining ₹83 crore was classified as “others.”

Shares of IRCON International Ltd ended at ₹206.60, down by ₹10.75, or 4.95% on the BSE.