PNC Infratech Ltd, an Agra-based infrastructure construction, development and management company with expertise in execution of several major projects that include highways, bridges, flyovers, power transmission lines, airport runways and development of industrial areas, is experiencing robust growth in revenues and profitability despite the economic slowdown and the consequent impact on the infrastructure sector.
Over the last five years, even though the Indian construction industry as a whole had been witnessing inconsistent growth and facing uncertainties due to economic slowdown, PNC Infratech’s consolidated revenue increased from Rs.7,548.35 million in fiscal 2010 to Rs.13,642.43 million in fiscal 2014. The company’s consolidated PAT during the same period grew from Rs.452.23 million to Rs.519.70 million. From fiscal 2010 to fiscal 2014, its total revenue increased at a CAGR of 15.95 per cent and PAT increased at a CAGR of 3.54 per cent. The consolidated revenue and PAT for the nine-month period ended December 31, 2014, was Rs.13,263.71 million and Rs.624.32 million respectively.
According to the company, a prudent procurement process coupled with judicious bidding, efficiency in project execution and focus on projects with higher margins including large projects enabled it to maintain growth and increase profitability even though the infrastructure sector faced slowdown.
EPC services
PNC Infratech provides EPC services on a fixed-sum turnkey basis as well as on item rate basis for various infrastructure projects. The company has an established track record in executing large construction projects, particularly highways and airport runways, and its projects pan across the states of Rajasthan, Punjab, Haryana, Uttarakhand, Uttar Pradesh, Delhi, Bihar, West Bengal, Assam, Madhya Pradesh, Maharashtra, Karnataka and Tamil Nadu.
Currently, PNC Infratech is executing 23 infrastructure projects in EPC mode, of which one is with a joint venture partner. Its order book in terms of value of contract including escalation stood at Rs.78,497.00 million as on March 31, 2015, and Rs.60,857.80 million as on March 31, 2014, as compared to Rs.55,680.89 million as on March 31, 2013.
Out of the 23 infrastructure projects being executed by the company in EPC mode, 19 projects with total contract value including escalation of Rs.74,399.10 million relate to road construction, one project with total contract value including escalation of Rs.2,201.40 million relates to power transmission and distribution, two projects with total contract value including escalation of Rs.1,719.80 million relate to airport runways and one project with total contract value including escalation of Rs.176.70 million relates to water supply infrastructure.
PNC Infratech has so far executed and completed 42 infrastructure projects in EPC mode. Of these, 24 were road infrastructure projects.
BOT projects
The company executes projects in BOT mode as well. As on March 31, 2015, it was engaged in developing/operating seven BOT projects. Of the seven BOT projects, six projects relate to road infrastructure and one to re-development and management of an industrial estate. Construction in respect of two of the BOT projects has already been completed.
PNC Infratech has also forayed into OMT projects. It was awarded the operation and maintenance of Kanpur-Lucknow section of NH-25, Lucknow bypass of NH-56A and NH-56B and Lucknow-Ayodhya section of NH-28 in Uttar Pradesh on OMT basis by National Highways Authority of India for a period of nine years from August 2013. The aggregate road length is 217.32 km. Toll collection has commenced at all three toll plazas.
PNC Infratech’s major clients include NHAI, Airports Authority of India, Delhi State Industrial and Infrastructure Development Corporation Ltd, Uttar Pradesh Power Corporation Ltd, RITES Ltd, Military Engineering Services, Uttar Pradesh State Highway Authority, Uttar Pradesh Expressway Industrial Development Authority, Haryana State Road Development Corporation, Dedicated Freight Corridor Corporation of India Ltd, MPRDCL and Public Works Department and Uttar Pradesh government.
As part of business growth strategy, PNC Infratech seeks to expand presence in development of industrial areas and dedicated freight corridor projects, diversify into waste management and water-related projects, continue focus on EPC contracts while enhancing penetration in BOT and OMT projects, maintain performance and competitiveness of existing business, develop and maintain strong relationship with clients and strategic partners, and strengthen systems and internal processes.
