Synopsis:
PNC Infratech secured the lowest bid for a ₹2,956.66 crore contract from South Eastern Coalfields for coal extraction and transportation at the Gevra OCP expansion in Chhattisgarh.
The shares of the Infra company, specializing in infrastructure development and construction, particularly in highways, expressways, bridges, flyovers, and airport runways, jumped upto 5 percent upon receiving a contract worth Rs. 2,957 Crores from South Eastern Coalfields.
With a market capitalization of Rs. 7,877.04 Crores on Tuesday, the shares of PNC Infratech Ltd rose by 5.4 percent after making a high of Rs. 314.85 compared to its previous closing price of Rs. 298.45.
PNC Infratech Ltd, engaged in infrastructure development and construction, particularly in highways, expressways, bridges, flyovers, and airport runways, has been declared the lowest (L1) bidder by South Eastern Coalfields Limited (SECL) for a contract worth Rs. 2,956.66 crores.
The contract is for handling, transporting, and mining services at the Gevra OCP Expansion Project in Chhattisgarh. The order, which is domestic and will be executed over five years, involves hiring equipment for overburden removal, coal extraction, and transportation.
Financials & Others
The company’s revenue declined by 32.6 percent from Rs. 2,624.15 crore to Rs. 1,766.63 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 395.89 crore to Rs. 75.48 crore during the same period.
The company has a low P/E ratio of 9.39, significantly below the industry average of 19.92, indicating it might be undervalued. It also has more current assets than liabilities, suggesting solid short-term financial stability. Additionally, the company has demonstrated strong performance with an average 3-year net profit growth of 16.15%.
In Q4 FY25, the company earned Rs. 1,242 crore (73%) from EPC, Rs. 201 crore (12%) from Water, and Rs. 261 crore (15%) from Toll/Annuity. The EPC segment dominates revenue, and the water and Toll/Annuity contribute smaller but significant portions.
PNC Infratech Ltd. is a leading infrastructure construction, development, and management company, specializing in executing projects like highways, bridges, flyovers, airport runways, industrial areas, railways, and transmission lines.
The company has completed over 90 major projects across 13 states, with 66 of them being road EPC projects. Currently, it is working on 20 active projects. PNC operates a large fleet of advanced equipment and has a highly skilled workforce.
It is also involved in 4 BOT projects, including both toll and annuity assets, and has 13 HAM projects in total, 3 of which are operational, 6 under construction, and financial closure has been achieved for 3, with 1 more awaiting approval from MPRDC.
The company’s enhanced capital expenditure (Capex) and its designed to boost and upgrade its execution capabilities. This investment is expected to drive a turnover of Rs. 10,000-12,000 crore in the near future. Over the years, the company’s turnover has steadily increased from Rs. 1,016 crore in FY19 to an estimated Rs. 1,330 crore in FY25.
Written by Sridhar J
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