PNC Infratech bets big on infra projects

The PNC Infratech, which is an Agra-based renowned infra builder of national repute, is also among the leading roads and construction companies, currently commands an order book of Rs. 5,339cr. What set the company apart from its peers is its execution capabilities. In the five years to 2015-16, when business of most infrastructure players suffered from weak execution revenue grew at a compound annual growth rate (CAGR) of 12.1%. With a lean balance sheet, the company is poised to grab a reasonably good number of roads and construction projects to be awarded by the National Highways Authority of India and the ministry of road transport and highways. In the September quarter, the company's execution of its order book was impacted due to delayed monsoon and delays by NHAI in providing land. But these issues are expected to be resolved by the March 2017 quarter. In the coming quarters, the company's execution of roads projects such as Nagina-Kashipur, Varanasi-Gorakhpur, LucknowAgra and Agra-Firozabad, expected to pick up at a faster pace fetching considerable contribution to its construction revenues.