Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PNC Infratech Ltd (BOM:539150, Financial) secured new orders worth INR 6,670 crores in the current financial year, indicating strong business acquisition capabilities.
- The company achieved significant financial growth with a 69% increase in profit for H1 FY25 compared to H1 FY24.
- PNC Infratech Ltd's EBITDA margin for H1 FY25 improved to 25.1%, showcasing efficient cost management.
- The company has a robust unexecuted order book of over INR 19,900 crores, providing revenue visibility for the future.
- PNC Infratech Ltd expects to close 10 asset sales before the end of the current financial year, which will enhance liquidity.
Negative Points
- The infrastructure sector faced challenges due to intense monsoon and low project awarding activity, impacting PNC Infratech Ltd's operations.
- The company anticipates a 15% to 20% decline in revenue for FY25, reflecting subdued execution and order inflow.
- PNC Infratech Ltd is dealing with a ban by MoRTH, which could affect its ability to secure new projects.
- Execution delays were noted due to non-availability of land for several awarded projects, affecting revenue realization.
- The company's net working capital cycle stands at 144 days, indicating potential liquidity management challenges.
Q & A Highlights
Q: Can you provide an update on the one-year ban and its impact on PNC Infratech?
A: We are evaluating options, including a final appeal against the order. We are also taking measures to mitigate the impact of the ban. We remain hopeful of obtaining relief and will keep stakeholders updated on any material developments.
Q: What is the current order book status and future order expectations?
A: Our order book guidance for the current financial year is between INR 13,000 to 15,000 crores. We have already secured around INR 6,700 crores in orders and expect an additional INR 6,000 to 8,000 crores from authorities other than MoRTH.
Q: Could you elaborate on the sectors and authorities from which you expect new orders?
A: We have submitted bids for projects worth over INR 11,000 crores with various state and central authorities, including railways. Additionally, we have identified projects worth INR 14,000 crores for future bidding.
Q: What is the revised revenue guidance for FY25 and FY26?
A: For FY25, we expect a revenue decline of 15% to 20%. However, for FY26, we anticipate a growth of over 30%.
Q: How is the asset sale transaction progressing, and when do you expect to receive the proceeds?
A: We expect to close the sale of 10 assets by the end of the current financial year, with the remaining two assets to be completed in the next financial year. Everything is proceeding as planned.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
