PNC Infratech 3QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on PNC Infratech 3QFY2016 Results:

PNC Infratech reports strong 3QFY2016 numbers

"PNC Infratech (PNC) reported strong set of numbers 3QFY2016 numbers. The performance was mainly driven by strong execution of captive BOT as well as other EPC road projects, which in our view, contributed to strong 35.9% YoY increase in top-line to INR 518cr (ahead of our expectation of INR 484cr). Strong execution led PNC report strong EBITDA of INR 64cr. EBITDA margins declined 83bp YoY to 12.4%, during the quarter. Strong execution, 44.5% YoY decline in interest expenses and 23.2% increase in other income, contributed to impressive 58.0% YoY increase in PAT. PNC reported strong quarterly PAT of INR 32cr, which is again ahead of our estimates. Reported PAT margins stood at 6.3%, which is a 88bp YoY expansion.

PNC to-date in FY2016 has reported order inflows of INR 1,743cr, which is ahead of FY2015's order inflows of INR 1,618cr. As of 3QFY2016-end, we estimate PNC to be sitting on an order book of INR 3,775cr (order book/ LTM sales ratio at ~2.1x). We maintain our positive view towards the stock."

Source : Equity Bulls

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