We always bid for a right project at a right price
Technology

We always bid for a right project at a right price

Yogesh Kumar Jain, Managing Director, PNC Infratech PNC Infratech is an integrated infrastructure investment, development, construction, operation and management company, with expertise in the execution of expressways, highways, bridges, flyovers and airport runways and the ...

Yogesh Kumar Jain, Managing Director, PNC Infratech PNC Infratech is an integrated infrastructure investment, development, construction, operation and management company, with expertise in the execution of expressways, highways, bridges, flyovers and airport runways and the development of industrial areas across several states in the country. With its three decades of expertise in the field of infrastructure, the company has executed over 65 major infrastructure projects to date and is currently executing 20 expressway, highway and airport runway projects worth over Rs 150 billion on the EPC model. The company’s end-to-end execution capabilities enable timely completion of projects with enhanced control. It has consistently been making profits since inception and has a healthy balance sheet with over Rs 25billion net worth as on March 31, 2020. Yogesh Kumar Jain, Managing Director, PNC Infratech, shares more…. Major challenge faced in FY2019-20 and the company’s approach to it:Timely possession and provision of vacant land by project authorities for seamless execution of projects have been the major challenge during FY2019-20. As the company mobilised adequate resources and fully gearedup across all its project sites with meticulous planning, we executed works at all the available fronts and sides, without waiting for handing over of intermittent stretches, even at the priceof contiguity. Another major challenge faced by the company was securing new business, particularly when the bidding and awarding activity in the country has been significantly subdued during the major part of FY2020, which has further increased competition. With the right bidding strategy and focus on opportunities in the stronghold area, the company was able to secure four major new projects of an aggregate value of over Rs 62 billion. Biggest contributor to the company’s growth in FY2020: Investment, development, construction, O&M capabilities under one roof, an unexecuted orderbook of over Rs 120 billion at the beginning of FY2020, well-planned execution across projects with a proactive approach, a large fleet of state-of-the-artplant and machinery, a workforce of over 8,000 with proven abilities, sound credit ratings and prudent financial planningwere the major contributors. A decision avoided that helped impact the topline and bottomline:As a principle, we don’t bid and grab projects just for the sake of order-book expansion; we always bid for a right project at a right price, which was scrupulously followed in FY2020 as well. Plans for growth in FY2020-21 amid the uncertainties the COVID-19 pandemic has brought about:As the company’s execution and operation capabilities are backed by in-house planning,construction and operations, fully owned construction equipment, mostly owned mining and aggregate crushing facilities and zero working capital loan, the impact on growth,both in terms of revenue and profitability, would not be significant in FY2021. Though there could be a limited shortfall in the growth in the first half of FY2021 owing to the lockdowns, disruption in supply chains and exodus of migrant labour, coupled with the early arrival of the monsoon at some major project locations, with a robust order book, a large number of major ongoing projects and adequate resources fully mobilised, we are confident of rapidly accelerated progress in the second half, not only to makeup the shortfall but also come out with very decent and convincing numbers in FY2021. PNC Infratech Total Income EBITDA Reported PAT FY20 (Rsbillion) 56.0 13.3 5.5 Growth over FY19 (%) 48.4 31.9 57.7    

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