PNC Infra Q4 Results Review - Strong Margins, Muted Order Inflows To Pick Up In FY25E: ICICI Securities

ICICI Securities Report

PNC Infratech Ltd. has suffered on the order inflows front due to a bump in the road in bidding in FY24; the sector has suffered too. That said, PNC has maintained strong execution.

The company’s top line remained flat in Q4 FY24, at Rs 21 billion, while its Ebitda margin expanded 290 bps YoY to 16.2% in Q4 FY24. Given the strong bid pipeline of Rs 2.5 trillion for FY25E, as of March 2024, the company expects healthy order inflow during the same period. PNC guides for 10% revenue growth with an order inflow target of Rs 100 billion for FY25.

We expect the bidding to pick up in FY25E, post general elections in Apr-June-24. It is monetising its 12 projects in two phases, which shall bring in equity of Rs 29 billion. We resume coverage on PNC with Add and an SoTP-based target price of Rs 581 per share.

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