PNC Infratech Q2 results: Net profit dives 44% to Rs 83 crore YoY; revenue down 25%

PNC Infratech Ltd on Tuesday reported a 43.92 per cent year-on-year (YoY) drop in its second-quarter consolidated net profit for the ongoing financial year 2024-25 (Q2 FY25). During the quarter under review, profit came at Rs 83 crore as against Rs 148 crore in the year-ago period.

The civil construction firm's revenue from operations fell 25.33 per cent to Rs 1,427 crore from Rs 1,911 crore in the year-ago period. Operating profit (EBITDA) slipped 11 per cent to Rs 356 crore in Q2 FY25 compared to Rs 400 crore in the September 2023 quarter.

The quarterly results were out after market hours today. Earlier in the day, PNC Infratech shares shed 0.92 per cent to settle at Rs 318.65. At this price, the stock has tanked 29.36 per cent in the past one month.

It has started tumbling after the Ministry of Roads (MoRTH) disqualified the construction firm and its two subsidiaries from participating in any new tender process of the ministry for a year.

The CBI had initiated an investigation against the company in June 2024 and apprehended four of its employees for bribing NHAI officials with Rs 10 lakh in exchange for final approval, a no objection certificate (NOC), and the processing of the final bill for NHAI's Jhansi-Khajuraho project.

Following this, the CBI filed an FIR and a charge-sheet in June 2024 and August 2024, respectively. After a hearing, MoRTH has now disqualified PNC Infratech and its two subsidiaries from participating in any new tender process of the ministry for a period of one year, with effect from October 18, 2024.

Since NHAI and NHIDCL too fall under MoRTH, Nuvama Institutional Equities said the company is disqualified from participating in tenders with them as well. The domestic brokerage has put PNC Infratech's stock 'under-review' after disqualification for a year from MoRTH projects.

According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 7.40 against a price-to-book (P/B) value of 1.73. Earnings per share (EPS) stood at 43.44 with a return on equity (RoE) of 23.31.

As of September 2024, promoters held a 56.07 per cent stake in PNC Infratech.