PNC Infratech stock tumbles 7% to 52-week low as Q2 earnings disappoint

PNC Infratech is a player in infrastructure development, handling projects from highways, bridges, flyovers, airport runways, power transmission lines, water supply systems

Shares of PNC Infratech plunged around 7% to hit a fresh 52-week low after the infrastructure firm reported a 43.6% year-on-year (YoY) decline in net profit at Rs 83.5 crore quarter ended September 30, 2024. Its revenue from operations fell 25.3% YoY to Rs 1,427 crore.

At the operating level, the company's earnings before interest, tax, depreciation, and amortisation (EBITDA) dipped 10.9% to Rs 356.4 crore in Q2FY25 and the EBITDA margin stood at 25% in the reporting quarter against 20.9% in the prior-year period.

PNC Infratech is a player in infrastructure development, handling projects from highways, bridges, flyovers, airport runways, power transmission lines, water supply systems and industrial area development. The company’s work spans various sectors, focusing on design, engineering, procurement, construction, and operations and maintenance (O&M).

Follow our market blog to catch all the live action

The construction firm's standalone revenue, EBITDA, and PAT for Q2FY25 came in at Rs 1,149 crore, Rs 134 crore, and Rs 81 crore, respectively. For the first half of FY25, the company reported revenue of Rs 2,894 crore, EBITDA of Rs 727 crore, and PAT of Rs 502 crore.

At 10:42 am, PNC Infratech shares were trading around 54 percent lower at Rs 304.80 on the National Stock Exchange (NSE). The stock has fallen 12 percent this year, underperfoming Nifty's 10% gain.

Over the past 12 months, the stock has dipped 4%, while Nifty rose 23% during the same period

The stock started tumbling after the Ministry of Roads (MoRTH) disqualified the construction firm and its two subsidiaries from participating in any new tender process of the ministry for a year. Nuvama Institutional Equities has put PNC Infratech's stock 'under-review' after disqualification for a year from MoRTH projects.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.