Shares of one of the leading infrastructure firm gained 3.4% to ₹ 531.60 apiece after the company received ₹56.38 crore as a bonus for completing the project ahead of the scheduled date.
With a market capitalization of ₹ 13,494 crore, PNC Infratech Ltd belongs to the small-cap category of stocks. On the second half of the trading day, the company shares were quoted at ₹ 526 apiece, up 2.14 percent on the exchange.
According to the company’s exchange filing, PNC Infratech Limited received ₹56,38,64,640 as a bonus for the early completion of an EPC project.
The project, “Construction of Access Controlled Nagpur-Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg) in the State of Maharashtra on EPC Mode for Package 4, in District Washim,” was completed 94 days ahead of the scheduled completion date. This bonus was awarded by the Maharashtra State Road Development Corporation Ltd (MSRDC) on May 28, 2024.
PNC Infratech Limited received the project order from MSRDC and completed it in 2022. The bonus, calculated at 0.03% of the contract value for each day of early completion (94 days x 0.03% x ₹ 1999.52 crores), amounted to ₹ 56,38,64,640 and was received by the company today, May 28, 2024, as per the contract agreement.
The company’s revenues increased by 13 percent year on year from ₹2,305 crore in Q4FY23 to ₹ 2,600 crore in Q4FY24, while net profit increased by 171 percent from ₹146 crore to ₹ 396 crore.
PNC Infratech shares have gained 57 percent in the last six months and 71 percent in a year.
PNC Infratech Limited is engaged in the business of infrastructure development, construction, and management companies in the country.
The company undertakes a wide range of infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, and industrial area development. To date, it has successfully completed more than 90 major infrastructure projects nationwide, with over 60 in the roads and highways sector.
As of March 2024, the company has executed 85 major infrastructure projects across 13 states, including 61 road EPC projects, and is currently working on 26 ongoing projects. The total value of contracts under execution exceeds ₹15,400 crore.
The company generates the majority of its revenue from road projects, accounting for 69%, followed by water projects at 21%, and toll projects contributing 10%.
Written by Omkar Chitnis
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