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RESULTS REVIEW 2QFY18 17 NOV 2017

PNC Infratech
BUY
INDUSTRY INFRASTRUCTURE The worst is over
CMP (as on 16 Nov 2017) Rs 179 PNC Infratechs (PNCL) 2QFY18 revenue came in Highlights of the quarter
18.6% below estimates, as only 29% of the order
Target Price Rs 203
book was available for execution. With entire order
Appointed dates finally coming, lend execution
visibility: PNCL has reduced FY18E revenue guidance to
Nifty 10,215 backlog expected to start contributing revenue early
15-20% vs 25% earlier, owing to delay in land
Sensex 33,107 4QFY18E, the worst may be over for PNCL. The order
acquisition in EPC projects worth Rs 16bn. PNCL has
KEY STOCK DATA backlog is robust ~Rs 111.5bn (6.5x FY18E revenue). received Appointed Date (AD) for Nagina Kashipur (Rs
Bloomberg PNCL IN LOI has been received for the Chakeri - Allahabad 11.5bn) on 28-Oct-2017, and work has commenced.
No. of Shares (mn) 257 HAM, with the total project cost at Rs 21.6bn. The Bhojpur Buxar AD is expected by Dec-18E.
MCap (Rs bn) / ($ mn) 46/703 appointed date for the remaining 3 HAM projects HAM equity requirement of Rs 6bn, BOT value Rs
6m avg traded value (Rs mn) 49 worth Rs 41.5bn is expected by Jan-18E, with 33.4/sh (1.5x P/BV): During 2QFY18, toll collection
STOCK PERFORMANCE (%) financial closure already tied up. PNCs standalone grew 19.5% YoY to Rs 1,495mn. PNCL expects to
52 Week high / low Rs 214/99 net D/E is 0.01x. Working capital is stable. receive Rs 185mn early completion bonus for the
3M 6M 12M PNCLs earnings have bottomed out and growth Raebareli project during 3QFY18E.
Absolute (%) 27.4 13.4 57.6 recovery will play out from 3QFY18E. We have cut Near-term outlook: PNCL is geared to move the entire
Relative (%) 23.2 5.1 31.7 our FY18E/FY19E EPS estimates by 16.7/19.8% order backlog of Rs 111.5bn into execution by FY18E-
SHAREHOLDING PATTERN (%) respectively, owing to the delay in the appointed end. Early completion bonus of Rs 600mn is expected
Promoters 56.07 date for the EPC/HAM projects. We maintain BUY from UPEIDA by Mar-18E for the Lucknow-Agra
FIs & Local MFs 22.21 with increased SOTP of Rs 203/share. project. We remain constructive.
FPIs 5.43
Financial Summary (Standalone)
Public & Others 16.29
Year Ending March (Rs mn) 2QFY18 2QFY17 YoY (%) 1QFY18 QoQ (%) FY17 FY18E FY19E FY20E
Source : BSE
Net Sales 2,686 3,599 (25.4) 3,515 (23.6) 16,891 17,254 25,053 32,099
EBITDA 397 463 (14.4) 468 (15.2) 2,210 2,297 3,352 4,285
Parikshit D Kandpal
APAT 167 284 (41.1) 246 (32.0) 1,518 1,038 1,520 1,830
parikshitd.kandpal@hdfcsec.com
+91-22-6171-7317 Diluted EPS (Rs) 0.7 1.1 (41.1) 1.0 (32.0) 5.9 4.0 5.9 7.1
P/E (x) 30.2 44.2 30.2 25.1
Kunal Bhandari EV / EBITDA (x) 21.4 20.3 15.1 12.5
kunal.bhandari@hdfcsec.com RoE (%) 10.3 6.4 8.8 9.8
+91-22-6639-3035 Source: Company, HDFC sec Inst Research
HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters
PNC INFRATECH : RESULTS REVIEW 2QFY18

Standalone Quarterly Financial


PNCL revenue came in 18.6%
Particulars (Rs mn) 2QFY18 2QFY17 YoY (%) 1QFY18 QoQ (%) 1HFY18 1HFY17 YoY (%)
below our estimates. Rs Net Sales 2,686 3,599 (25.4) 3,515 (23.6) 6,201 8,749 (29.1)
32.3bn of the order book (of Material Expenses (1,765) (2,552) (30.8) (2,384) (25.9) (4,149) (6,306) (34.2)
total Rs 111.5bn) was Employee Expenses (238) (213) 11.5 (264) (9.8) (502) (456) 10.0
available for execution Other Operating Expenses (286) (370) (22.7) (399) (28.4) (685) (853) (19.6)
during 2QFY18 and this EBITDA 397 463 (14.4) 468 (15.2) 865 1,134 (23.8)
resulted in muted revenue Depreciation (184) (134) 37.1 (175) 5.0 (359) (255) 40.8
EBIT 213 329 (35.4) 293 (27.3) 505 879 (42.5)
PAT stood at Rs 167mn Other Income 52 101 (48.3) 55 (5.5) 107 275 (61.1)
Interest Cost (77) (58) 32.0 (80) (3.8) (157) (80) 96.4
14.2% lower than our
PBT 188 371 (49.5) 268 (29.9) 455 1,074 (57.6)
estimate Tax (21) (20) 3.3 (21) (3.8) (42) (82) (49.3)
OCI/EO Items - - - 51 (100.0) 51 - -
PNCL won Rs 21.6bn of HAM Reported PAT 167 352 (52.4) 298 (43.8) 465 992 (53.1)
project Allahabad Chakeri EO Items - (68) (100.0) (52) (100.0) (52) (68) (23.3)
during 2QFY18 APAT 167 284 (41.1) 246 (32.0) 413 924 (55.3)
Source: Company, HDFC sec Inst Research
Order backlog is ~Rs 48.4bn Margin Analysis
excluding Rs 63.1bn of 4 MARGIN ANALYSIS 2QFY18 2QFY17 YoY (bps) 1QFY18 QoQ (bps) 1HFY18 1HFY17 YoY (bps)
HAM projects which are yet Material Expenses % Net Sales 65.7 70.9 (520) 67.8 (210) 66.9 72.1 (517)
to move into execution. Employee Expenses % Net Sales 8.9 5.9 293 7.5 135 8.1 5.2 288
Total gross order book is Rs Other Ope. Expenses % Net Sales 10.6 10.3 37 11.4 (71) 11.1 9.7 130
111.5bn EBITDA Margin (%) 14.8 12.9 190 13.3 146 13.9 13.0 98
Tax Rate (%) 10.9 5.3 558 8.0 296 9.2 7.7 151
PNC has standalone gross APAT Margin (%) 6.2 7.9 (166) 7.0 (77) 6.7 10.6 (390)
Source: Company, HDFC sec Inst Research
/net debt of Rs 1.14/0.2bn
and net D/E of 0.01x Change In Estimates (Standalone)
FY18E FY18E % FY19E FY19E %
With delay in Rs 16.1bn of Rs mn
New Old Change New Old Change
EPC order backlog Revenues 17,254 20,535 (16.0) 25,053 28,568 (12.3)
appointed date we have cut EBIDTA 2,297 2,727 (15.8) 3,352 3,838 (12.7)
our standalone EPS estimate EBIDTA Margins (%) 13.3 13.3 3.3 13.4 13.4 (5.5)
by 16.7% in FY18E and RPAT 1,385 1,663 (16.7) 1,806 2,253 (19.8)
19.8% for FY19E EPS (INR) 5.4 6.5 (16.7) 7.0 8.8 (19.8)
Source: Company, HDFC sec Inst Research

Page | 2
PNC INFRATECH : RESULTS REVIEW 2QFY18

We expect PNCs order book Order Book To Multiply 1.4x Over FY18-20E EBIDTA Margins To Remains Stable At ~ 13%
to multiply 1.4x over FY18- Order book (Rs mn) Revenues (Rs mn) EBITDA Margins (%) PAT Margins (%) - RHS
20E Book-to-bill ratio (x) - RHS Rs mn
185,000 8 16.0
Rs mn
165,000 7 14.0
Roads EPC and HAM will be 145,000 12.0
6
key drivers for order-book 125,000 10.0
growth 5
105,000 8.0
4
85,000 6.0
PNC is targetting Rs 50bn 65,000
3
4.0
order inflow in FY18E 45,000 2
2.0
25,000 1
-
EBITDA and PAT margins to 5,000 0

FY12

FY13

FY14

FY15

FY16

FY17

FY18E

FY19E

FY20E
remain at 13.3-13.4% and
FY12

FY13

FY14

FY15

FY16

FY17

FY18E

FY19E

FY20E
5.7-6.1% over FY17-19E
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
Expect PNC to add debt over
FY18-20E to fund capex, Expect FY20E Net D/E Ratio Of 0.4x Expect FY20E NWC Cycle Of 127 days
HAM and WC needs. FY20E- Net Debt (Rs mn) Net D/E Ratio (x) - RHS Cash flow from operations - LHS NWC Cycle - RHS
end net D/E ratio may inch 3,500 0.50 3,000 Rs mn Rs mn 200
up to 0.4x 2,500
180
3,000 0.40
160
2,000 140
Expect net working capital 2,500 0.30
120
cycle improvement to 127 1,500
2,000 0.20 100
days in FY20E and cash flow 1,000 80
too. This shall be on the back 1,500 0.10
500 60
of a large captive HAM - 40
1,000 0
order book of Rs 68.8bn 20
500 (0.10) -500 0
FY12

FY13

FY14

FY15

FY16

FY17

FY18E

FY19E

FY20E

FY12

FY13

FY14

FY15

FY16

FY18E

FY19E

FY20E
FY17
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

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PNC INFRATECH : RESULTS REVIEW 2QFY18

BOT portfolio Value BOTs at Rs 33.4/sh (1.5x P/BV)


The Aligarh-Ghaziabad BOT
has achieved full COD in The Aligarh-Ghaziabad project has been one of the key availability is 80% in these projects, and work will start
3QFY17, resulting in 20% pain points in PNCs BOT portfolio. The toll collection by early 4QFY18E. The Chakeri project LOI has been
increase in toll. Average toll has declined from Rs 5.3mn/day in 1QFY18 to Rs received, with 70% work front availability. Financial
collection for 2QFY18 stood 4.8mn/day during 2QFY18. There has been a ban on closure will be achieved by early 1QFY19E.
at Rs 4.8mn/day, which now overloading, hence the fall. The collection has Narela project: PNCL has received arbitration of Rs
stands at Rs 5.5mn/day improved to Rs 5.5mn/day now. 430mn in its favour. This was contested by DSIIDC
during Nov-17 PNCL has issued Rs 1.1bn of warrants as loss funding (Delhi State Industrial and Infrastructure Ltd) in the
for the Aligarh-Ghaziabad project in FY17, and an Honorable High Court and Supreme Court. The courts
This is ~33% lower than our additional Rs 300mn of loss funding is required to meet ruled in PNCLs favour, and Rs 430mn of claims shall
expectation of Rs 9mn/day financial liabilities. PNCL expect to refinance the come in Nov-17E. The balance claims of Rs 430mn are
collections project during 2HFY18E, and a Rs 2.5bn top-up loan also expected by Mar-18E.
may be utilised to repay the warrants to PNCL. Raebareli - Jaunpur annuity project: PNCL expects to
Total toll collection for receive Rs 370mn as a bonus, of which Rs 185mn will
HAM project equity requirement of Rs 6bn over the
2QFY18 stood at Rs 1,495mn come to PNCL standalone during 3QFY18E.
next 2-3yrs: Except for the recently-won Allahabad
which is growth of 19.5% Chakeri HAM project, PNCL has tied up financing for We have valued PNCs BOT portfolio at Rs 33.4/sh
YoY and -6.9% QoQ Chitradurga and Jhansi (two packages). Land (1.5x P/BV).

There is no pending equity PNC Equity Project NPV (PNCL Per share
PNC Stake Implied P/B
to be invested in the Project WACC (%) Invested Value (Rs Share) INR value
(%) (x)
(INR mn) mn) mn (Rs/sh)
completed projects. Total
Bareilly-Almora-Bagheshwar 100.0 13.5 750 567 567 2.2 0.8
equity invested is Rs 5.8bn
Kanpur-Kabrai 100.0 13.5 675 3,038 3,038 11.8 4.5
(PNC share), including Rs
Gwalior Bhind 100.0 13.5 780 1,728 1,728 6.7 2.2
1.2bn of loss funding to
Aligarh-Ghaziabad 35.0 13.5 1,860 (1,796) (629) (2.5) (0.3)
Aligarh-Ghaziabad project
Raebareli-Jaunpur 100.0 13.5 1,395 768 768 3.0 0.6
Narela Industrial Estate 100.0 13.5 350 971 971 3.8 2.8
Kanpur-Ayodhya 100.0 13.5 - 2,131 2,131 8.3 -
Total HAM projects equity
Total 5,810 7,407 8,574 33.4 1.5
requirement is Rs 6bn over
Source: Company, HDFC sec Inst Research
the next 2-3yrs

PNCs total asset portfolio is


valued at Rs 33.4/sh

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PNC INFRATECH : RESULTS REVIEW 2QFY18

We expect 18.3% FY18-20E Key Assumptions And Estimates (Standalone)


order backlog CAGR Key Assumptions - Consolidated FY18E FY19E FY20E Comments
We expect 18.3% FY18-20E order book CAGR on back of strong NHAI &
Closing order book 117,312 142,396 164,196
State EPC roads pipeline
Order book growth (%) 30.6 21.4 15.3
New order booking 44,766 50,138 53,898
FY18-20E revenue CAGR Book to bill ratio 6.8 5.7 5.1 Book to bill ratio to be 5.1 times in FY20E
36.4%, EBIDTA CAGR 36.6% Strong order book accretion to result in FY18-20E with revenue CAGR
Total Revenue 17,254 25,053 32,099 of 36.4%. PNCL has guided for 15-20% growth in FY18E we have
factored 2.2%
Growth (%) 2.2 45.2 28.1
EBIDTA 2,297 3,352 4,285 FY18-20E EBIDTA CAGR of 36.6% due to stable margin mix
EBIDTA margin (%) 13.3 13.4 13.4 Margins to remain in 13.3-13.4% range
Depreciation 699 766 915
Borrowing cost to grow at 87.2% FY18-20E CAGR to meet working
Financial Charges 261 531 916
EBIDTA margins to be capital demand, HAM equity requirement and capex
maintained in the 13.3- Other Income (Including EO Items) 168 148 198
13.4% range PBT 1,505 2,203 2,653 FY18-20E PBT CAGR of 32.8%
PBT margin (%) 8.7 8.8 8.3 PBT margins to decline on back of higher finance cost
Tax 120 397 822 Continue to avail tax savings on account of MAT credit
Tax rate (%) 8.0 18.0 31.0 Tax rate as per PNCL guidance
FY18-20E APAT CAGR of RPAT 1,385 1,806 1,830
13.6% adjusted for full tax We have also factored in 31% tax impact so difference in P&L tax
Removing MAT tax savings (346) (286) -
provisioning is factored here to arrive at adjusted PAT at 31% tax rate
APAT 1,038 1,520 1,830 FY18-20E APAT CAGR of 13.6% adjusted for full tax
Net margin (%) 6.0 6.1 5.7
Gross Block Turnover 2.6 3.3 3.7 Improvement on account of new orders inflow
May improve as NHAI share increase in order book and PNCL realizes
UPEIDA debtors on Lucknow Agra expressway has come down from Rs
Debtor days 120 100 82
1.3bn in 1QFY18 to Rs 0.7bn in 2QFY18 and will be entirely recovered
during 3QFY18E
Higher revenue growth, robust client advance to result in higher
CFO - a 2,844 222 2,623
positive cash flow from operations
CFI - b (1,750) (3,150) (4,300)
FCF - a+b 1,094 (2,928) (1,677)
CFF - c (476) 2,633 1,299
Total change in cash - a+b+c 617 (295) (378) Net cash position doesnt change debt materially
Source : HDFC sec Inst Research

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PNC INFRATECH : RESULTS REVIEW 2QFY18

We have changed our Outlook and valuation


valuation methodology on Increased Target Price to Rs 203/sh
PNC from standalone P/E We have changed our valuation methodology on PNC, early completion bonus (3-6% of project cost) leading
valuation to EV/EBDITA. from standalone P/E valuation to EV/EBDITA. This is to to EBIDTA margin expansion, and (3) Likely support
This is to account for account for uncertainty regarding MAT credit from the captive order book in lieu of any contraction
uncertainty around MAT recognition and early completion bonuses. We value in future roads EPC orders.
credit recognition and early PNC on 11x one year forward EV/EBIDTA vs implied 10x
completion bonuses. We multiple for peers. Our rationale for 10% premium for We have valued PNCs toll projects using 13.5%
value PNC on 11x one year PNC is (1) A robust order book (including L1/HAM discount rate for arriving at NPV of the projects. We
forward EV/EBIDTA vs orders) of Rs 111.5bn (6.7x FY18E revenue), (2) A value the BOT business at Rs 33.4/sh (1.5x of PNC
implied 10x multiple for strong balance sheet (1HFY18 standalone net D/E at invested equity). We remain cautious on the traffic
0.01x,, and (3) A high share of NHAI EPC/HAM roads in pick-up in the Aligarh-Ghaziabad BOT project, as
peers
the order book will result in lower working capital current collections are about 33% lower than
demand, as these projects have 10% advances. estimates.
10% premium valuation on
account of 6.7x FY18E After a lacklustre NHAI awarding during 1HFY18, we We maintain BUY with an increased SOTP of Rs
book/bill ratio, likely receipt expect the bids flow to increase substantially from 203/share (previous TP Rs 194/sh). We value the (1)
of Rs 800mn of early 2HFY18E. Higher-than-estimated orders may result in Standalone EPC business at Rs 146/share (11x one-
completion bonus and Rs further stock re-rating, as PNC has (1) A diversified year forward Sep-19E EBIDTA vs 18x P/E Sep-19E EPS
430mn of Narela project presence in roads and dedicated freight corridor, the earlier), (2) BOT projects at Rs 33.4/share, and (3)
claims biggest beneficiary of government spending, (2) Strong HAM FY18-20E cumulative equity investment at Rs
execution capability, which provides scope for earning 23/sh.
We value standalone EPC
business at Rs 146/share SOTP Valuation
Valuation Sep-19E Multiple Valuation Value per
Segment Comment
We value PNCs BOT Methodology EBIDTA (x) (INR mn) Share (INR)
portfolio at Rs 33.4/share Sep-19E EV/ We have reduced FY19E
Standalone construction - EPC 3,819 11 37,392 146
(1.5x invested equity) EBIDTA standalone net debt
BOT Value FCFE Mar-19E 8,574 33
1x P/BV cumulative equity
We value HAM projects at HAM Equity investment 6,000 23
investment over FY18-20E
1x P/BV of cumulative SOTP Value 51,966 203
equity investment over Source: HDFC sec Inst Research
FY18-20E period

Maintain BUY with Rs


203/sh TP

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PNC INFRATECH : RESULTS REVIEW 2QFY18

Income Statement (Standalone) Balance Sheet (Standalone)


Year ending March (Rs mn) FY16 FY17 FY18E FY19E FY20E Year ending March (Rs mn) FY16 FY17 FY18E FY19E FY20E
Net Revenues 20,142 16,891 17,254 25,053 32,099 SOURCES OF FUNDS
Growth (%) 29.0 (16.1) 2.2 45.2 28.1 Share Capital - Equity 513 513 513 513 513
Material Expenses 9,140 8,416 6,125 8,777 11,395 Reserves 13,271 15,209 16,110 17,433 18,780
Employee Expenses 836 1,003 1,154 1,269 1,396 Total Shareholders Funds 13,784 15,722 16,623 17,946 19,294
Other Operating Expenses 7,506 5,261 7,678 11,655 15,022 Long Term Debt 60 576 794 794 794
EBITDA 2,660 2,210 2,297 3,352 4,285 Short Term Debt 59 1,115 997 4,497 6,997
EBITDA Margin (%) 13.2 13.1 13.3 13.4 13.4 Total Debt 119 1,691 1,791 5,291 7,791
EBITDA Growth (%) 22.8 (16.9) 3.9 45.9 27.8 Net Deferred Taxes (30) (23) (23) (23) (23)
Depreciation 570 533 699 766 915 Long Term Provisions & Others 1,596 1,675 1,593 1,515 1,441
EBIT 2,089 1,677 1,598 2,587 3,370 TOTAL SOURCES OF FUNDS 15,469 19,065 19,985 24,730 28,503
Other Income (Including EO Items) 253 466 168 148 198 APPLICATION OF FUNDS
Interest 399 203 261 531 916 Net Block 2,125 3,479 4,030 4,015 4,300
PBT 1,943 1,939 1,505 2,203 2,653 CWIP 19 78 78 78 78
Tax (Incl Deferred) (402) (158) 120 397 822 Investments 4,644 4,676 5,176 7,576 10,676
RPAT 2,345 2,097 1,385 1,806 1,830 Other Non-current Assets 757 1,687 1,772 1,860 1,953
Removing MAT tax savings (810) (578) (346) (286) - Total Non-current Assets 7,545 9,920 11,056 13,529 17,007
APAT 1,535 1,518 1,038 1,520 1,830 Inventories 2,364 1,535 1,655 2,402 3,078
APAT Growth (%) 60.9 (1.1) (31.6) 46.4 20.4 Debtors 3,763 6,309 5,673 6,864 7,211
Adjusted EPS (Rs) 6.0 5.9 4.0 5.9 7.1 Other Current Assets 4,228 5,796 5,688 7,572 8,119
EPS Growth (%) 60.9 (1.1) (31.6) 46.4 20.4 Cash & Equivalents 971 355 972 678 300
Source: Company, HDFC sec Inst Research Total Current Assets 11,325 13,995 13,987 17,516 18,708
Creditors 942 2,369 2,836 2,746 2,638
Other Current Liabilities & Prov. 2,460 2,480 2,222 3,569 4,573
Total Current Liabilities 3,402 4,849 5,058 6,315 7,211
Net Current Assets 7,924 9,145 8,929 11,201 11,496
TOTAL APPLICATION OF FUNDS 15,469 19,065 19,985 24,730 28,503
Source: Company, HDFC sec Inst Research

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PNC INFRATECH : RESULTS REVIEW 2QFY18

Cash Flow (Standalone) Key Ratios (Standalone)


Year ending March (Rs mn) FY16 FY17 FY18E FY19E FY20E FY16 FY17 FY18E FY19E FY20E
Reported PBT 2,004 1,939 1,505 2,203 2,653 PROFITABILITY (%)
Non-operating & EO items (100) 26 - - - GPM 54.6 50.2 64.5 65.0 64.5
Interest expenses 249 (150) 93 384 718 EBITDA Margin 13.2 13.1 13.3 13.4 13.4
APAT Margin 7.6 9.0 6.0 6.1 5.7
Depreciation 525 533 699 766 915
RoE 14.6 10.3 6.4 8.8 9.8
Working Capital Change (1,467) (2,599) 667 (2,733) (840) RoIC (or Core RoCE) 25.6 12.9 10.6 12.9 13.3
Tax Paid - 164 (120) (397) (822) RoCE 19.7 13.4 8.3 10.0 9.3
OPERATING CASH FLOW ( a ) 1,210 (86) 2,844 222 2,623 EFFICIENCY
Capex (394) (1,895) (1,250) (750) (1,200) Tax Rate (%) (20.7) (8.1) 8.0 18.0 31.0
Free cash flow (FCF) 817 (1,981) 1,594 (528) 1,423 Fixed Asset Turnover (x) 4.7 2.8 2.4 3.1 3.5
Investments (325) 268 (500) (2,400) (3,100) Inventory (days) 43 33 35 35 35
INVESTING CASH FLOW ( b ) (719) (1,627) (1,750) (3,150) (4,300) Debtors (days) 68 136 120 100 82
Debt Issuance/(Repaid) (3,411) 1,411 100 3,500 2,500 Other Current Assets (days) 77 125 120 110 92
Payables (days) 17 51 60 40 30
Interest Expenses (332) (153) (93) (384) (718)
Other Current Liab. & Prov.
FCFE (2,927) (722) 1,601 2,589 3,205 45 54 47 52 52
(days)
Share Capital Issuance 4,172 - - - - Cash Conversion Cycle (days) 125 189 168 153 127
Dividend (161) (161) (483) (483) (483) Debt/EBITDA (x) 0.0 0.8 0.8 1.6 1.8
FINANCING CASH FLOW ( c ) 267 1,097 (476) 2,633 1,299 Net D/E (x) (0.06) 0.09 0.0 0.3 0.4
NET CASH FLOW (a+b+c) 759 (616) 617 (295) (378) Interest Coverage (x) 5.2 8.3 6.1 4.9 3.7
Closing Cash & Equivalents 971 355 972 678 300 PER SHARE DATA (Rs)
Source: Company, HDFC sec Inst Research EPS 6.0 5.9 4.0 5.9 7.1
CEPS 11.4 10.3 8.1 10.0 10.7
Dividend 2.5 0.5 1.5 1.5 1.5
Book Value 53.7 61.3 64.8 70.0 75.2
VALUATION
P/E (x) 29.9 30.2 44.2 30.2 25.1
P/BV (x) 3.3 2.9 2.8 2.6 2.4
EV/EBITDA (x) 16.9 21.4 20.3 15.1 12.5
EV/Revenues (x) 2.2 2.8 2.7 2.0 1.7
OCF/EV (%) 2.7 (0.2) 6.1 0.4 4.9
FCF/EV (%) 1.8 (4.2) 3.4 (1.0) 2.7
FCFE/Mkt Cap (%) (6.4) (1.6) 3.5 5.6 7.0
Dividend Yield (%) 1.4 0.3 0.8 0.8 0.8
Source: Company, HDFC sec Inst Research

Page | 8
PNC INFRATECH : RESULTS REVIEW 2QFY18

RECOMMENDATION HISTORY
Date CMP Reco Target
PNC Infratech TP
220 14-Dec-16 105 BUY 126
200
16-Feb-17 103 BUY 130
18-Apr-17 140 NEU 130
180
28-May-17 144 BUY 168
160
21-Aug-17 145 BUY 168
140 11-Oct-17 147 BUY 194
120 16-Nov-17 179 BUY 203
100
Rating Definitions
80
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
Dec-16

Oct-17
Aug-17
Apr-17
Nov-16

Jan-17

Nov-17
Feb-17

Sep-17
May-17

Jun-17

Jul-17
Mar-17

NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

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PNC INFRATECH : RESULTS REVIEW 2QFY18

Disclosure:
We, Parikshit Kandpal, MBA, and Kunal Bhandari, CA, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the
subject issuer(s) or securities. HSL has no material adverse disciplinary history as on the date of publication of this report. We also certify that no part of our compensation was, is, or will be directly or indirectly
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PNC INFRATECH : RESULTS REVIEW 2QFY18

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