HG Infra wins NHAI project worth Rs 997 crore; stock surges 8%

Shares of HG Infra Engineering surged 8 per cent to Rs 624 on the BSE in Friday’s intra-day trade after the company announced receipt of Letter of Award (LOA) from National Highways Authority of India (NHAI) for Hybrid Annuity Mode (HAM) project in the state of Haryana.

The project namely construction of six lane greenfield Karnal Ring road starting from NH44 near Village Shamgarh and terminating at Karnal Munak Road Vill Samalakhal in Haryana.

The bid project cost was at Rs 997.1 crore. The company had been declared L1 for the same earlier this month.

At 09:16 AM; the stock of civil construction company traded 7 per cent higher at Rs 613.70, as compared to 0.18 per cent rise in the S&P BSE Sensex. 

For the first half (April-October) of the current financial year 2022-23 (H1FY23), H G Infra posted 9 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 191 crore. Revenue from operations grew 10 per cent YoY at Rs 1,902 crore. Earnings before interest, taxes, depreciation, and amortization (Ebitda) margin declined 30 bps to 18.9 per cent from 19.2 per cent in H1FY22.

The company’s total secured order book stood at Rs 10,851 crore as on September 30, 2022. Of these orders, 64 per cent orders of the EPC projects and 36 per cent HAM projects, the company said.

Guidance on the bidding outlook and the business opportunities, the management is are very positive on the sector outlook and opportunities in the second half of this financial year. “The tendering is expected to show a strong pickup, which gives us the opportunity for winning new projects and further expanding of our order book. We are all aware that government is taking numerous initiatives in various infrastructure development program, including the national infrastructure pipeline, the Gati Shakti program that will give thrust to this sector and ample opportunities for the players like us,” the management said H1FY23 earnings conference call.