PNC Infratech jumps 16% on receipt of LOA for HAM project of Rs 1,412 cr

Shares of PNC Infratech rallied as much as 16.5 per cent to Rs 155 apiece on the BSE on Friday after the company announced it has received Letter of Award (LOA) from National Highways Authority of India (NHAI) for HAM Project of Rs 1,412 crore. 

At 09:27 am, the stock was trading around 7.5 per cet higher at Rs 143 on the BSE. In comparison, the S&P BSE Sensex was ruling 0.78 per cent higher at 35,115.30 levels. 

PNC Infratech's shares had a hit a 52-week high of Rs 219.40 on July 3, 2019 while its all-time high level stands at Rs 228, touched on December 26, 2017. 

"PNC Infratech Limited announces receipt Letter of Award (LOA) on June 24, 2020 for a NHAI Project of 53.95 km long Four-laning of Meerut-Nazibabad section of NH-119 (New NH-34) from design chainage Km 11+500 (Meerut) to 39.250 (Behsuma) and from km 79.500 (Bijnor) to 105.700 (Jalalabad), in the state of Uttar Pradesh under Bharatmala Pariyojana on Hybrid Annuity Mode (HAM) for Rs 1,412.0 crore," the company said in an exchange filing. 

The price bids were opened on Wednesday, May 13, 2020, with PNC’s bid being the lowest (L1), the filing added. 

The company further informed that the project is to be constructed in 24 months and operated for 15 years post construction. This is the eleventh hybrid annuity highway project secured by the company so far.

For the quarter ended March 2020, PNC Infratech posted a 45.63 per cent decline in its standalone net profit at Rs 76.08 crore. The company had logged a profit of Rs 139.93 crore in the year-ago period. Sales rose 7.65 per cent to Rs 1,157.95 crore. For the fiscal year ended March 2020, net profit rose 41.67 per cent to Rs 460.30 crore.