HDFC Securities: PNC Infratech Delivers Q1 Beat On Execution
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HDFC Securities Report
PNC Infratech Ltd. reported revenue at Rs 9 billion (26% beat), decline of 32%/22% YoY/QoQ.
Although, Ebitda fell 33%/23% YoY/QoQ, Ebitda margin remained intact (down 36/down 27 basis points YoY/QoQ), leading to adjusted profit after tax of Rs 601 million (down 40%/down 21% YoY/QoQ), approximately 3 times our estimate.
Labour availability has improved to 90%, and operations have resumed on all sites.
Including the five hybrid annuity model (HAM) orders and two engineering procurement and construction (EPC) projects won recently, executable order book stands at Rs 155 billion (approximately 3 times FY20 revenue).
Net working capital increased sharply to 84 days from 57 days on March 2020 on lower revenue base.
Nevertheless, PNC Infratech maintained net cash at the standalone level, with cash balance of Rs 6.7 billion.
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