Shares of PNC Infratech Ltd. took a major hit on Monday, falling 20%, after the company and its subsidiaries were disqualified from bidding on any Ministry of Road Transport & Highways tenders for a year. 😳 This disqualification came after the company was called in for a personal hearing regarding a CBI charge sheet filed earlier this year.
🚦 What Went Down?
The Ministry of Road Transport slapped the ban on PNC Infratech and its subsidiaries—PNC Khajuraho Highways Pvt. Ltd. and PNC Bundelkhand Highways Pvt. Ltd.—starting from October 18, 2024. While the company reassured investors that ongoing projects and O&M activities would continue unaffected, the future impact on other business ventures is still being evaluated. 🛠️🔍
📉 What’s the Impact?
- The company had expected an order intake of ₹8,000 crore to ₹10,000 crore for FY25.
- After the disqualification, PNC Infratech may need to revisit its earlier estimates of flat to -10% revenue growth this year.
- At the time of the June quarter, their executable order book stood at ₹19,000 crore, including ₹5,000 crore worth of lowest bidder contracts. Now, with this ban, future tender bids are likely to be off the table for the year. 📊💼
Stock Market Update: PNC Infratech’s stock is down to ₹371.8, losing most of its 2024 gains, now up only 7% year-to-date. 👀