PNC Infratech, HG Infra Engineering Ltd, Ahluwalia Contracts. During the December quarter , road infrastructure companies continued to benefit from strong order book led by government spending. However the festive season, state elections and pollution control measure in the Delhi National capital region (NCR) etc were some dampeners when it came to execution.
Analysts at Axis Securities said that companies under their coverage reported revenue growth of 7%. Earnings before interest, tax, depreciation and amortisation (Ebitda) was flattish, while adjusted net profits grew by 4% against their expectation of 14% revenue growth, 11% Ebitda growth and 13% yoy net profit growth. The results were clearly below expectations which Axis Securities attributes primarily to the underperformance of GR Infra projects and KNR Construction Ltd.
Also Read- ICICI Bank share price up 14% since November; what should investors do? Experts weigh in Nevertheless PNC Infratech & H.G. Infra contributed positively on Revenue, Ebitda and Net profit fronts, and their performances were largely in line with their expectations. While GR Infra Projects & KNR Construction's performance was below their expectations on all counts, which impacted the overall performance.
PSP Projects, KEC International & RITES' performance was below expectation on the Ebitda and net profit front, they said. Ahluwalia Contract outperformed on all counts as per Axis Securities. PNC Infratech Ltd: Axis Securities has Buy ratings on the PNC Infratech stock with target price of ₹510.
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