The shares of this infrastructure company gained up to 2 percent from intraday high after the company received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Ltd for Battery Energy Storage Systems.
With a market capitalization of Rs 9,478.16 crore, the shares of HG Infra Engineering Ltd (NS:HGIN) were trading at Rs 1,454.55 per share, decreasing around 4 percent as compared to the previous closing price of Rs 1509.05 apiece.
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Reason for rise:-
According to the company filing, H.G. Infra Engineering Ltd received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Ltd for 250 MW/500 MWH out of the project for setting up 500 MW/1000 MWh Standalone Battery Energy Storage Systems in Gujarat.
Financial performance
Examining the company’s financial performance, revenue slipped by 6 percent from Rs 955 crore in Q2FY24 to Rs 902 crore in Q2FY25. During the same duration, net profit decreased by 16 percent from Rs 96 crore to Rs 81 crore.
Infrastructure Sector Outlook
The infrastructure sector shows promise with highway projects worth Rs 50,655 crores for 936 km under high-speed corridors, and MoRTH planning INR 3 trillion in contracts by H2 FY25. Additionally, railway projects worth INR 24,657 crores and Rajasthan’s 65 GW solar target by FY30 highlight growth.
Project Updates
The company secured two HAM projects worth Rs 1,544 crores and was selected for a 185 MW solar project with an annual revenue potential of INR 52.83 crores. COD was achieved for several projects, demonstrating significant progress in execution and operations.
Margin:-
Solar margins remain robust at 18%, supported by stabilized PV module prices. However, railway project margins are lower at 10-12%, with DMRC margins at just 3% due to design issues and overruns. Consolidated PAT faces a Rs 62 crore impact from inter-company solar revenue eliminations.
Order Inflow:-
The company targets an FY25 order inflow of Rs 11,000-12,000 crores, with Rs 5,500 crores already secured. Management expects 15-16% EBITDA margins and 17-18% revenue growth, focusing on operational efficiency, strategic project selection, and exploring opportunities in new segments for sustained growth.
Company Snapshot
H.G. Infra Engineering Limited is an India-based company engaged in the construction, development, design, and management of infrastructure projects. The Company is engaged in engineering, procurement, and construction (EPC), maintenance of roads, bridges, flyovers, and other infrastructure contract works.
Written by Abhishek Singh
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