PNC Infratech Gains 6.12% After Securing Highway Project Worth ₹1,174 Crore

PNC Infratech Gains 6.12% After Securing Highway Project Worth ₹1,174 Crore

VoM News Desk | December 19, 2023 | 01:47 PM IST | Breaking News | Follow on Google News

PNC Infratech Gains 6.12% After Securing Highway Project Worth ₹1,174 Crore Image/Pixabay

PNC Infratech Gains 6.12% After Securing Highway Project Worth ₹1,174 Crore

PNC Infratech, a prominent infrastructure firm, witnessed a notable surge of 6.12% in its share price, reaching ₹364 each during intraday trading on Tuesday. This uptick followed the company’s successful bid securing a new Hybrid Annuity Highway Project valued at ₹1,174 crore from MPRDC.

The company revealed in a Monday exchange filing that it clinched the coveted position of the lowest bidder (L1) for the “Construction of Western Bhopal Bypass as 4-lane with paved shoulders.” This highway project spans 40.90 km, commencing from km 424.0 of Jabalpur-Bhopal Road (NH-46) and concluding at km 21.0 of Bhopal-Dewas Road (SH-28) in Madhya Pradesh under the Hybrid Annuity Mode (HAM). The project encompasses a 24-month construction period, followed by 15 years of operation.

PNC Infratech’s shares have yielded a substantial return of 21.73% this year. Currently, they are trading 11.13% below their all-time high of ₹395.90 per share.

In Q2 FY24, the company demonstrated impressive financial performance, recording a 12.12% YoY surge in consolidated net profit to ₹148 crore compared to ₹132 crore in the corresponding quarter of the previous year. Revenue from operations also climbed by 6.46% YoY to ₹1,911 crore from ₹1,795 crore in Q2 FY23. The operating profit witnessed significant growth, reaching ₹400 crore from ₹326 crore, showcasing a 23% YoY increase, with an operating profit margin of 21%, up by 300 bps YoY.

HDFC Securities maintained a ‘buy’ rating on PNC Infratech post its Q2FY24 performance, setting a target price of ₹452 per share. The brokerage highlighted the company’s robust balance sheet and improved margins. As of September 2023, PNC exhibited a net debt position of ₹2 billion, reduced from ₹3 billion in June 2023, holding a cash balance of ₹2 billion against a gross debt of ₹4 billion.

PNC plans strategic investments of ₹1.0 billion, ₹4.5 billion, and ₹4.3 billion in H2FY24, FY25, and FY26 respectively. Despite a capex of ₹0.3 billion in H1FY24, the company maintains its FY24 guidance unchanged at ₹1.2 billion. The firm’s due diligence for 11 HAM and 1 BOT project is complete, anticipating monetisation by the fiscal year-end. As of 11:30 AM, the stock was trading at ₹349.90, up by 2.02%.

PNC Infratech Gains 6.12% After Securing Highway Project Worth ₹1,174 Crore: In case of rectification of any error in this Article, Visit on Correction Policy or Register your Query

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.