The shares of this leading infrastructure company surged by approximately 7 percent after the company announced that it has scored an arbitration award with relation to NHAI. In this article, we will look at the details.
With a market capitalization of Rs 7,478 crores, the shares of PNC Infratech Ltd are currently trading at Rs 292 per share, down by 49.3 percent from its 52-week high of Rs 574.80 per share. Over the last five years, the stock has delivered a return of 185 percent.
About the announcement
PNC Infratech Ltd has received an arbitration award of Rs 485.28 crore in an age-old dispute with the National Highways Authority of India (NHAI). The dispute pertained to an EPC contract for balance work on the New Four Lane Agra Bypass project, linking NH-2 and NH-3 in Uttar Pradesh. The case was decided by an arbitral tribunal headed by former Chief Justice Dipak Misra and retired Supreme Court judges K.S.P. Radhakrishnan and G.S. Singhvi.
The tribunal ruled in favour of PNC Infratech, awarding the company Rs 485.28 crore along with 12 percent annual interest from May 17, 2025, until payment is realized. It also dismissed NHAI’s counterclaims worth Rs 38.52 crore plus interest.
PNC had originally laid claims worth Rs 661.51 crore, with interest up to August 24, 2024, based on disputes during project execution. Arbitration proceedings started in June 2019. The financial effect of the award will be accounted for when the amount is received.
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Financial Highlights
The company reported a revenue decline of percent to Rs 1,470 crores in Q3 FY25 from Rs 2,047 crores in Q3 FY24. It reported a net profit of Rs 81 crores in Q3 FY25, down by percent from Rs 185 crores in FY24.
The company delivered an ROE and ROCE of 18.82 percent and 15.84 percent respectively, and is currently trading at a P/E of 6.58x as compared to its industry average of 20.84x.
About the company
PNC Infratech Limited is one of the front-ending infrastructure development, construction, and management companies in the country. The company undertakes infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, industrial area development, and other infrastructure activities.
Written by Satyajeet Mukherjee
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