PNC Infratech jumps 7 per cent on receiving LOA for rural water supply project worth Rs 952.0 crore

PNC Infratech Limited, in a joint venture with SPML Infra Limited, announced on Thursday after the market hours that it has received a letter of acceptance (LOA) for an EPC project.

The above-mentioned project is for the survey, design, preparation of DPR, construction, commissioning, and O&M for ten years of rural water supply project in 952 villages in Devipatan division of Uttar Pradesh from State Water Supply & Sanitation Mission, Namami Gange & Rural Water Supply Department. 

The approximate value of the project is Rs 952.0 crore. PNC Infratech’s share in this JV is 95 per cent. The completion period for the project is 21 months and it is to be operated for 10 years. This is the second project, which the company has received in the drinking water supply sector.

Reacting to this, the stock of PNC Infratech today rose by 7.76 per cent and made an intraday high of Rs 188.85 per share.

Meanwhile, the company reported a net profit of Rs 78.65 crore in Q2FY21, which decreased by 63.26 per cent YoY, as compared to Q2FY20 when it had reported a profit of Rs 214.08 crore. The company reported a total income of Rs 1,271.04 crore for Q2FY21, a decrease of 8.71 per cent, as against the total income of Rs 1,392.38 crore for Q2FY20.

At 11.14 am today, the stock of PNC Infratech was trading at Rs 181.45 per share on BSE, up by 3.54 per cent.