Early on Thursday morning, PNC Infratech’s shares jumped 7% to ₹458.90 after the company declared that it has emerged as the “lowest bidder” for a ₹2,091 crore infrastructure project close to the future Navi Mumbai Airport.
Building highways, flyovers, small bridges and associated electrical works are all included in the four-year contract, as per the regulatory filing. City & Industrial Development Corporation of Maharashtra Ltd. (CIDCO), the town planning body for Navi Mumbai, requested project bids.
“Our Company has been declared Ll (First Lowest) bidder in an EPC project on item rate percentage, namely “Integrated Infrastructure Development of 20M & above wide roads, Construction of Various Major & Minor Structures (Viz Flyover, Minor Bridges, VUPS, PUPS, etc.), and Allied Electrical Works (Street Light) in TPS-8,9 and TPS-12 under NAINA Project on 09.10.2024 for a quoted price of Rs. 2090.59 crore,” the company said in its regulatory filing on Wednesday.
The National Highways Authority of India (NHAI) selected the company in August as the lowest bidder for a highway-cum-bridge project, awarding them a ₹380 crore contract. Under the hybrid annuity model, this entails building and running a second, three-lane bridge across the Ganga to link Buxar and Bharauli on National Highway 922 in Uttar Pradesh and Bihar.
The corporation has positioned itself to take advantage of the government’s ambitious plans for infrastructure expansion by securing multiple highway and motorway projects this year. According to the business’s Q1 financial presentation, as of the June quarter, the order book is valued at ₹14,100 crore, indicating a healthy position held by the company.
The Ministry of Road Transport and Highways received ₹2.78 lakh crore in the FY 2024–25 Interim Budget, a 2.7% increase in financing for the road sector and just 0.5% more than the revised projection of ₹2.76 lakh crore. Under the Bharatmala Pariyojana, ₹1.68 lakh crore of this budget is designated for the national highway corridor owned by the NHAI.
Financially speaking, the company reported a consolidated net profit of ₹575 crore for the first quarter of the current fiscal year, up 218% from ₹181 crore during the same period the previous year. Revenue from operations also increased, rising to ₹2,168 crore from ₹2,092 crore in Q1 FY24.
Stock up 185% in 4 years
The stock has increased from ₹156 to ₹445.95 a share during the last four years, a whopping 185% gain. It hit an all-time high of ₹556.95 per share in June.
The business provides complete infrastructure solutions, such as item-rate and fixed-sum turnkey EPC services. Additionally, it works on projects using a variety of public-private partnership models, including Operate-Maintain-Transfer and Design-Build-Finance-Operate-Transfer (DBFOT).
