PNC Infratech spikes 63 per cent in three months
The shares of PNC Infratech have delivered a significant return of around 63 per cent on BSE in the last three months. The company’s order book as on March 31, 2020 stood at Rs 8,629 crore.
This does not include the Challakere-Hiriyur project under Bharatmala Pariyojana on the hybrid annuity model (HAM) for a bid project worth Rs 1,157 crore with engineering, procurement, construction (EPC) cost of Rs 935 crore and four new HAM projects that it won over the last four months. If we consider all these projects, the total order book stood above Rs 15,000 crore. This strong order book delivers healthy revenue visibility over the next three years.
Talking about COVID-19 impact on the company’s operation, its construction work across all the sites were suspended on March 25, 2020. However, with the government’s order, the work has been started in a gradual manner from April 15, 2020. Here, the major issue is of the labourers, whose shortage hampered the work initially. Also, the company uses its own construction equipment, which has helped them to reduce the rental costs of equipment in this slowdown.
Looking at the liquidity, the company is having adequate liquidity to meet all the future requirements for the business operations. The company has enhanced fund-based limits from Rs 750 crore to Rs 1,000 crore, which would enable the company to execute projects without any financial constraints.
On the capex front, in FY20, the company had incurred capex of Rs 78 crore. For FY21E, the company has guided capex of Rs 75-80 crore. This will be majorly funded via internal accruals as the company enjoys cash of Rs 740 crore on its books.
In the recent quarter (Q4FY20), the consolidated revenue came in at Rs 1,346.7 crore, registering six per cent YoY increase. EBITDA fell by 7.6 per cent YoY to Rs 295.04 crore and EBITDA margin stood at 21.9 per cent. PAT came in at Rs 88.82 crore, with a YoY decline of 47.1 per cent. Looking at the full-year numbers i.e. for FY20, the revenue jumped by 48 per cent YoY to Rs 5,602.57 crore while, EBITDA grew by 32 per cent YoY to Rs 1,327.18 crore. Further, the company reported a net profit of Rs 543.4 crore, up by 55 per cent YoY. Historically, the company’s revenue has grown at 23 per cent CAGR over the last five years. Also, net profit has grown at 43 per cent CAGR over the past five years.