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PNC Infra shares surge over 10% on strong Q4 results, order book

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PNC Infratech's net profit jumped 70 percent to Rs 129 crore in the March quarter leading to the shares rallying on Wednesday.

PNC Infra shares surge over 10% on strong Q4 results, order book
The share price of PNC Infratech surged over 10 percent on Wednesday after the company's net profit jumped 70 percent to Rs 129 crore in the March quarter. The company had posted a profit of Rs 76 crore in the year-ago quarter.
The stock rose as much as 10.3 percent to its intra-day high of Rs 286.75 per share on the BSE after the earnings.
The company's revenue also surged 42 percent YoY to Rs 1,644 crore in Q4 versus Rs 1,158 crore in the year-ago period. Its EBITDA rose 49 percent YoY to Rs 232 crore in the quarter under review and EBITDA margin came in at 14.1 percent, up 63 bps.
The sentiment was also lifted as the company announced that it has an order book of over Rs 11,600 crore.
“As of March 31, 2021, the remaining value of contracts under execution of Rs 11,648 crore. After considering the two engineering, procurement, and construction (EPC) road projects, seven EPC water projects, the order book is over Rs 16,600 crore,” PNC Infra said in an investor presentation.
However, for the full year FY21, the company's net profit declined to Rs 362 crore versus Rs 460 crore in FY20. Revenue came in at Rs 4,925 crore in FY21 versus Rs 4,877 crore in FY20.
"PNC Infratech delivered a largely in-line 4QFY21. Execution has not been impacted much in the quarter as labour availability remained intact despite the second wave of the pandemic. Margins are also expected to remain healthy as a large part of the order book (OB) has a cost escalation clause," HDFC Securities said in a note.
With this backdrop, management has guided for 20 percent topline growth, 13.5-14 percent EBITDA margin, and Rs 8000-9000 crore order inflow in FY22.
HDFC Securities maintains a 'buy' call on PNC, given a strong order book and net cash balance sheet.