PNC Infratech Q3 Results Review - Muted Inflow, Guidance Revised Lower: IDBI Capital

IDBI Capital Report

PNC Infratech Ltd. Q3 FY24 profit after tax came in-line with our estimates. Revenue increased by 11% YoY and was better than previous quarters. But due to muted order inflow, PNC Infratech has revised the revenue guidance lower to + 10% YoY for FY24E/25E earlier this was + 10 to +15% YoY.

Post the result we have revised the revenue lower by 6%/7% for FY24/25E and moved target price to FY26E at Rs 453 earlier target price was Rs 432.

Market has appreciated the asset monetisation deal and stock is up 25% in the last one month.

Given this run up, we are revising rating to 'Hold' from 'Buy'. Order inflow was muted in nine months FY24 at Rs 11 billion versus expectation of Rs 80-100 billion.

Though order pipeline remain strong but model code of conduct from election could impact fresh inflow for the sector in FY24E.

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