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PNC Infratech Ltd.

BSE: 539150 Sector: Infrastructure
NSE: PNCINFRA ISIN Code: INE195J01029
BSE 00:00 | 28 Oct 330.25 -9.10
(-2.68%)
OPEN

338.10

HIGH

338.15

LOW

328.70

NSE 00:00 | 28 Oct 331.15 -7.90
(-2.33%)
OPEN

332.90

HIGH

338.75

LOW

329.00

OPEN 338.10
PREVIOUS CLOSE 339.35
VOLUME 20237
52-Week high 395.55
52-Week low 147.00
P/E 21.44
Mkt Cap.(Rs cr) 8,473
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 338.10
CLOSE 339.35
VOLUME 20237
52-Week high 395.55
52-Week low 147.00
P/E 21.44
Mkt Cap.(Rs cr) 8,473
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

PNC Infratech Ltd. (PNCINFRA) - Chairman Speech

Company chairman speech

Dear Shareholders

At the outset I express my deep concern for the outbreak of pandemic COVID-19 and itsunabated spread across India and the world causing huge losses not only to the economybut to the lives and livelihoods of people. To address the crisis the Government of Indiahas come out with wide-ranging relief measures under the Atmanirbhar Bharath Abhiyan andmore such measures are expected to mitigate the sufferings and losses holistically.Historically in such crisis situations as the underprivileged and marginalisedpopulations being vulnerable are affected more severely the policy changes and newpolicies should increasingly be aimed at these sections of the society. Rapid expansionand upgradation of the existing health care infrastructure in the country is anotherimperative that should be addressed by the governments at both central and state level.

While coming back to our Company I am happy to present to you the Annual

Report of FY2020. The fiscal was another remarkable year for PNC Infratech Limited interms of its growth and performance. During this period we were able to recordsignificant growth on the back of our balance sheet strength project executioncapabilities and our ability to meet the challenges apart from seizing the rightopportunities at right times. With our three decades of expertise in the field ofinfrastructure we have completed over 66 major infrastructure projects. We are currentlyexecuting 20 expressway highway and airport runway projects worth over 15000 crore onthe EPC mode. Our performance is driven by the end-to-end proven execution capabilitiesthat enable us to deliver complex projects within the most demanding timelines.

FY2020 in perspective

During the year we were successfully able to deliver on our commitments along withstrengthening our order book for sustainable future growth. Though impact of Covid-19pandemic on the Company's performance in FY2020 was not significant both constructionactivities and operations of the Company were majorly disrupted during the last fortnightof financial year. In the pre-lockdown period we had a robust bidding pipeline of highwayprojects on both EPC and HAM models which has not been affected much even during thepandemic period till date. During the Q4 of FY2020 we were awarded three new projectsincluding four laning of Unnao-Lalganj section of NH 232 A Jagdishpur-Faizabad Section ofNH-330A Aligarh-Kanpur section of NH 34. Our unexecuted order book as on 31st March 2020including these three new HAM projects was over

13000 crore. At PNC Infratech we have always strived to maintain healthy balance sheetwith sound financials. As a result the ratings of our Company has always been one of thebest in the infrastructure industry thereby enabling us to sustain our credit cost atcompetitive levels. I am happy to inform that during the year the

CARE Ratings have reaffirmed our credit ratings at ‘Double AA Minus' for Long Termand ‘Single A1 Plus' for Short Term Bank Facilities.

Leveraging on our robust construction capabilities

At PNC Infratech our execution and operation capabilities are supported by in-houseplanning construction and operations wholly-owned state-of-the-art large fleet ofconstruction equipment mostly-owned mining and aggregate crushing facilities andunstrained liquidity.

Flyover at Km 550 Chakeri Allahabd Section of NH-2

"As we move ahead our trust in the growth story of PNC remains intact and we areconfident that our capabilities will further provide us with the impetus to exploreuntapped opportunities."

Over the years we have demonstrated and nurtured our robust execution capabilities.Our consistent performance is driven by the core strengths that enable us to successfullydeliver the projects within the budgeted costs and demanding timelines. Our provenexpertise and time-tested capabilities provide us with the significant control overexecution quality time and cost of our projects even in the most challenging situations.Throughout our journey we have invested in modern plants and machinery and have built alarge equipment bank which augments our execution capabilities progressively. DuringFY2020 our gross block stood over 1000 crore which places us advantageously to executeprojects of value over 7000 crore with given in-house plant and machinery. Our strongproject execution and support teams with proven expertise further ensure that we areable to meet our set targets for delivery of challenging projects across the geographiesand socio-cultures within the stipulated timelines.

Financial performance

During FY2020 our standalone revenue stood at 4878 crore showing an increase of 58%as against the previous financial year. The EBITDA for the fiscal was 764 crore whichshowed a growth of 67% as compared to FY2019. Additionally the EBITDA margin for the yearwas 15.7% marking an increase of

90 basis points compared to the previous fiscal. The PAT for FY2020 was recorded at 460crore with rise of 42% as against

FY2019. As on 31st March 2020 the net working capital days reduced from

97 days in FY2019 to 57 days for the year under review. The net worth of the Companyon a standalone basis was

2547 crore at the end of FY2020. Total standalone debt was 326 crore which hasessentially been availed for equipment finance as such we do not have any working capitalloan outstanding as on 31st March 2020. The total cash and bank balance was 744 crore.

On a consolidated basis our revenue

EBIDTA and PAT stood at 5602 crore 1327 crore 552 crore with year-on-year growth of48% 32% and 58% respectively. On consolidated basis the

Company's net worth stood at 2554 crores whereas total debt was 3515 crore as on 31stMarch 2020. Our cash and cash equivalents including current investments stood at 1254crore for the year under consideration which translates into net debt to equity of 1.38times.

Outlook in times of the crisis

Construction activities and tolling operations being manpower-intensive we wouldcontinue to ensure that our people at both execution and operation projects are in safeand secure environment. To this end while scrupulously adhering to the Standard OperatingProcedures set forth by the authorities due precautions are taken across both operationand construction sites including provision of face masks gloves sanitizers to workersand employees staggering of working and food timings provision of additional washingfacilities and following social distancing. Thermal scanners are also provided at all thesites for checking temperature of staff and workers and for physical separation ofsuspected/sick persons isolation rooms set-up at all the camp sites. Although theconstruction activities have been resumed from the fourth week of April 2020 onwards theprogress remained subdued due to reverse migration of construction workers owing tolockdowns disruption in the supply chains followed by early onset of monsoon at some ofthe project locations till the end August 2020. Given the uncertainty of the contagionfull impact on performance for FY2021 will be dependent on multiple unpredictabledevelopments such as severity spread peak flattening and duration of the pandemic andtheir effect on socio-economic situation. However as the company's execution capabilitiesare backed by all-encompassing in-house competencies and fully owned resources it isexpected that the overall impact would not be significant in FY2021.

In conclusion

As we move ahead we believe that our core strengths operational efficiencies andinherent resilience will help us to navigate through the crisis without significantlyimpacting our growth in terms of both revenue and profitability.

We expect a limited shortfall in the performance of the Company in the first half ofFY2021 owing to the lockdowns and consequent irreversible contractions. Nonetheless witha robust order book major ongoing projects and adequate resources we are confident ofachieving accelerated progress during second half of FY2021 which will not onlycompensate for the shortfall but also will help in accomplishing brighter performances inthe coming years. As we progress we are confident that our capabilities in the presentcore sectors will provide us with the impetus to explore untapped opportunities andsectors where we find synergies. Please be assured that your unflinching trust in thegrowth story of PNC Infratech remains intact.

In closing I would like to express my sincere gratitude to all our stakeholders whosetrust and support in our journey have been the driving force behind our consistent growth.I would also like to thank the Board for the valuable guidance our prized human capitalfor their continued passion and dedication towards the Company and our bankers suppliersvendors sub-contractors for their committed accompaniment. We are optimistic that ourmindful business strategies will facilitate us to provide sustainable value to ourshareholders.

With Regards

Pradeep Kumar Jain

Chairman

.