PNC Infratech - Q4FY20 First Cut - ICICI Securities

(CMP - Rs. 135; Market Cap - Rs. 3468 crore)

PNC Infratech reported resilient Q4FY20 numbers led by better than expected execution which percolated to EBITDA and bottomline beat.

Q4FY20 earnings summary

- Topline came in at Rs. 1157.9 crore, up 7.6% YoY (better than our estimates of flattish growth), clearly reflecting superior execution on all HAM projects under construction, notwithstanding the impact of Covid-19 in the second half of March

- EBITDA came in at Rs. 156.3 crore, up 3.4% YoY (higher than our estimate of Rs. 142.5 crore), on account of better topline and lower employee expenses. The consequent margin was higher at 13.5% (down 55 bps YoY) but better than estimates of 13%

- The company reported a PAT of Rs. 76.1 crore (down 45.6% YoY) vs. expectations of Rs. 58.5 crore, with beat led by superior EBITDA. The decline in PAT on YoY basis, was largely owing to ~Rs. 66 crore reversal of tax paid in earlier years, in the base quarter (Q4FY19). On the PBT basis, decline was modest 6.5% YoY

While we await key KPI of order book and inflows, it is pertinent to note that PNC performance was better than expected on the operational front with comfortable leverage and working capital being a key positive. We highlight that the EPC execution is likely to take a hit in the first half of FY21 owing to lockdown effect, labour scarcity and monsoon. We await management commentary on execution outlook and ordering traction. We will soon come up with an update.

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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