PNC Infratech - Q2FY21 First Cut - ICICI Securities

(CMP - Rs. 168; MCap - Rs. 4316 crore)

PNC Infratech's execution, notwithstanding extended monsoon and some residual labour availability issues, was resilient for the quarter. The company posted a decent set of numbers given the circumstances.

Q2FY21 earnings summary

- Topline came in at Rs. 1053.5 crore, down ~10.7% YoY (better than our estimates of ~13.8% decline). We, however, note that base quarter (Q2FY20) had Rs. 109.5 crore as arbitration claim for Hapur-Moradabad project, as a part of the revenues. Adjusted for the same decline was ~1.6% YoY (vs. 5% decline expectations on adjusted basis)

- EBITDA came in at Rs. 142.1 crore, down ~44.8% YoY (higher than our estimate of Rs. 134.6 crore). Here also, adjusted for the one-off element in the base quarter, the EBITDA decline is merely ~3.8% YoY. The consequent margin, was at 13.5% (down 30 bps YoY, on adjusted basis), slightly better than estimates of 13.2%

- The company reported a PAT of Rs. 69.1 crore (down 66.5% YoY on reported basis) vs. expectations of Rs. 66 crore, with beat led by superior EBITDA. On adjusted basis, PAT was up ~12% YoY, given the lower interest costs and depreciation

While we await key KPI of order book and inflows, it is pertinent to note that PNC execution remained resilient on the operational front. Healthy order book (as of Q1), comfortable leverage and working capital remains the strength of the company. We await management commentary on execution outlook and ordering traction. We will come up with an update post the conference call tomorrow.

Shares of PNC Infratech Ltd was last trading in BSE at Rs.168.25 as compared to the previous close of Rs. 171.55. The total number of shares traded during the day was 14754 in over 923 trades.

The stock hit an intraday high of Rs. 172.05 and intraday low of 162. The net turnover during the day was Rs. 2462131.

Source : Equity Bulls

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