PNC Infratech

PNC Infratech’s Stock Surges as Highway Project Completion Beats Deadline by 2 Months

 

PNC Infratech is making headlines in the stock market with a stunning 11% rally in its share price. This happened when one of its subsidiaries, Hathras Highways Pvt. Ltd., completed a ₹738 crore highway project in Uttar Pradesh two months before the deadline. 

This achievement reflects the company's concern for completing projects on time without any delay.

 

Bonus to PNC Infratech Due to Early Completion

 

This project was part of the National Highways Authority of India's Hybrid Annuity Model (HAM). It involved four-lane construction from Gaju Village to Devinagar Bypass, covering a 33-kilometer length. Work was finally completed before October 31, 2024, whereas completion was initially expected on or before December 31, 2024, earning PNC Infratech an early completion bonus of ₹1.428 crore.

The announcement not only boosted market confidence but also emphasized PNC Infratech's execution capabilities. On Wednesday, by 10:08 AM, the company's stock had jumped to ₹343.50 on the NSE, which indicates a huge jump from flat performances in the broader Nifty 50 index.

 

Financial Performance Shows Mixed Signals

 

Beyond this milestone, the company reported mixed financial results for the second quarter. Revenue fell 25% year-on-year to ₹1,427 crore. EBITDA margin improved to 24.9% from 20.9%, indicating efficiency gains. Net profit, however, suffered, falling 43.6% to ₹83.5 crore.

PNC Infratech is one of the leading companies in infrastructure development. It has delivered many impactful projects, from sections of the Yamuna Expressway to urban water management initiatives. With diversified portfolios, the company will continue to play a vital role in India's growth in infrastructure. With an excellent track record of infrastructure delivery, PNC Infratech remains at the forefront of this critical space in India.

The project's earlier completion underlines PNC Infratech's focus on efficiency and innovation. Analysts are optimistic, with most maintaining a "buy" rating and projecting further upside potential.