PNC Infratech declared the lowest bidder by NHAI for highway-cum-bridge project, stock trades in green

The work involves the construction of an additional three-lane bridge over river Ganga for connection between Buxar and Bharauli on NH-922 in Uttar Pradesh and Bihar on hybrid annuity mode (HAM). The project cost amounts to ₹380 crore, the company said while adding that the construction period stands at 910 days and the operation period stands at 15 years post construction.

During the first quarter of fiscal year 2025, PNC Infratech reported a 4% year-on-year (YoY) rise in its consolidated revenue at ₹2,168 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 122% YoY to ₹969 crore while EBITDA margin improved significantly by 2,383 basis points YoY to 44.7%. Net profit soared 218% YoY to ₹575 crore during the quarter.

PNC Infratech highlighted the remaining value of contracts under execution stands at over ₹14,100 crore as on June 30, 2024. At the same time, the remaining value of contracts under execution, including contract worth ₹4,994 crore where the company is the lowest bidder, stands at over ₹19,000 crore, which is over 2.5 times the FY24 revenue.

The company, along with its wholly-owned subsidiary, PNC lnfra Holdings has signed a master securities purchase agreement (SPA) with Highways Infrastructure Trust (HIT), an infrastructure investment trust (InvIT) to divest 12 of its road assets.

The assets include 11 national highway HAM assets and one state highway build-operate-transfer (BOT) toll asset. The enterprise value stands at ₹9,005.7 crore, together with the earnouts. PNC Infratech said the disinvestment is aligned with its strategic objective of recycling the capital invested in operating road assets to leverage its growth vision.

Shares of PNC Infratech rose over 32% since the beginning of the year. The stock has gained over 43% in the last year.