Shares of this infrastructure stock reached a 20 percent lower circuit limit on Monday after the company and its two subsidiaries were disqualified by the Ministry of Road Transport & Highways on Saturday from participating in any tender processes.
Share Price Movement
In Monday’s trading session, PNC Infratech Ltd share price hit an intraday low of Rs.366.70 per share, reaching the 20 percent lower circuit limit from the previous close of Rs.458.35 per share. Over the past six months, the share has declined by over 15 percent.
What is the News
Shares of PNC Infratech Ltd. plummeted after the Ministry of Road Transport & Highways disqualified the company and its two subsidiaries from participating in any tender processes for one year, starting October 18, 2024. This decision followed a personal hearing held on October 18 regarding an FIR and a Charge Sheet filed by the CBI in June and August.
PNC Infratech and its subsidiaries, PNC Khajuraho Highways Pvt. Ltd. and PNC Bundelkhand Highways Pvt. Ltd., were asked to present their case to the ministry. The company stated in its exchange filing that there would be no impact on ongoing development, construction, and operation & maintenance activities, though it will evaluate the effects on other operations.
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Current Order Book
At the end of the June quarter, PNC Infratech estimated an order intake of Rs.8,000 crore to Rs.10,000 crore for FY 2025, with current orders totaling Rs.5,000 crore where it was the lowest bidder. Of the unexecuted order book, 82 percent is attributed to highway, expressway, and canal contracts, while 18 percent comes from water projects.
The executable order book was projected to reach Rs.19,000 crore by the end of the quarter, which includes the L1 of Rs.5,000 crore.
Future Outlook
For FY26, revenue growth is projected to be around 15 percent, driven by anticipated project advancements and the acquisition of new projects. The company is also focusing on diversifying into the railway sector, actively pursuing bids for railway projects.
Financial Performance
According to its recent financial updates, PNC Infratech Ltd reported revenue increase of 4 percent to Rs.2,168 crore in Q1 FY25 from Rs.2,092 crore Q1 FY24. Profit after Tax also increased significantly by 217 percent to Rs.575 crore from Rs.181 crore during the same period.
Company Profile
PNC Infratech Limited is a prominent player in the infrastructure development, construction, and management sector in India. The company specialises in a wide range of infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, and industrial area development, among other activities.
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Written by – Siddesh S Raskar
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