PNC Infratech Ltd.'s consolidated net profit dropped 44% in the second quarter of the current financial year. The infrastructure firm recorded a profit of Rs 83.5 crore in the September quarter as compared to Rs 147.9 crore in the same quarter of the previous fiscal, according to an exchange filing on Tuesday.
Revenue declined 25% to Rs 1,427.1 crore in the three months ended September. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 11% to Rs 356.4 crore. The Ebitda margin expanded 410 basis points to 25% from 20.9% in the year-ago period.
The company won an order worth Rs 2,039.6 crore for a road project from City and Industrial Development Corp. of Maharashtra. The company will execute the project jointly with Aakshya Infra Projects Pvt. through the engineering, procurement, and construction mode. This infrastructure project will be issued under Cidco's Navi Mumbai Airport Influence Notified Area project.
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Shares of PNC Infratech rose as much as 1.88% during the day to Rs 327.80 apiece on the NSE. It closed 1.18% lower at Rs 317.95 apiece, compared to a 1.07% decline in the benchmark Nifty 50. The share price has fallen 1.90% in the last 12 months and 9.11% on a year-to-date basis.
The shares of the company started falling since Oct. 18 when the Ministry of Road Transport & Highways disqualified the company from participating in any bids by the ministry for a year, in connection with an ongoing investigation by the Central Bureau of Investigation pertaining to a bribery case.
PNC Infratech's order backlog stood at Rs 19,100 crore as of June. Of this, around 38% is from the ministry/National Highways Authority of India.
Thirteen out of the 19 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target by analysts implies a potential upside of 60.3%.
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