PNC Infratech - 4QFY20 Result Update - Angel Broking

Mr Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd.

"PNC Infratech reported a 10.7% YoY growth in revenues to Rs.1,157 crore for Q4FY20 which was in line with street estimates. EBIDTA margin for the quarter was down to 14.1% from 13.5% YoY as execution was impacted due to the lockdown. Net profit for the quarter was down to Rs.76.1 crore from Rs.139.9 crore due to lower EBIDTA margins and increase in depreciation and finance costs. However net profit for the quarter was ahead of street estimate of Rs.71.9 crore.

The Company had entered into a Share Purchase Agreement (SPA) with Cube Highways for sale of 35% stake in BOT project of Ghaziabad Aligarh Expressway on May 04, 2019 subject to closure of the deal within a total period of 12 months. However, the said SPA stood lapsed, as the validity of the SPA expired before the closure of the deal and the parties have decided not to extend the validity further. However the company has stated that they are in an advanced stage of discussions with another prospective investor, who has expressed interest in the project asset. Despite the cancellation of the deal with cube highway we remain positive on the prospects of the company considering its strong order book and inexpensive valuation."

Shares of PNC Infratech Ltd was last trading in BSE at Rs.136.15 as compared to the previous close of Rs. 133.4. The total number of shares traded during the day was 35237 in over 1730 trades.

The stock hit an intraday high of Rs. 142 and intraday low of 134.1. The net turnover during the day was Rs. 4872707.

Source : Equity Bulls

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