We met with PNCL’s management. Broadly, we found that the meeting confirmed our investment thesis for the stock of: a) high growth but coupled with strong focus on OCF generation, b) ability to maintain low standalone gearing levels (net debt of only `1.0 bn and with strong OCF generation and limited capex requirement is unlikely to shoot up materially.
PNCL has been awarded arbitration claims of Rs 1.4 bn against the National Highway Authority of India (NHAI) and Rs 0.31bn from a state road project. We expect these claims to accrue in FY20F and will directly flow upwards to the EBITDA level. Further, there will be receipt of `140 m as early completion bonus for the Aligarh Moradabad project. In addition to the above, which includes the P&L impact, there are receipts of
