 "HG Infra stock gains 5% on emerging lowest bidder for project of Rs 763 cr")
HG Infra stock rises: Shares of HG Infra soared as much as 5.38 per cent to hit an intraday high of Rs 1,729.55 per share on Thursday, July 25, 2024.
The surge in the HG Infra share price came after the company announced that it has emerged as the lowest bidder (L-1) for a project from the Ministry of Road Transport and Highways (MORTH).
The estimated cost of the project by MORTH was Rs 898.5 crore. However, the bid cost by HG Infra was Rs 763.11 crore.
In an exchange filing, the company said, “We are pleased to inform you that HG Infra Engineering Limited (the Company or HG Infra) has been declared as L-1 bidder by the Ministry of Road Transport and Highways (MORTH) for a project.”
According to the project details, HG Infra will be responsible for improvement and up-gradation in two lane with paved shoulders configuration of newly declared NH227B Bahuvan Madar Majha to Jagarnathpur (Design Km 160.200 to Km 224.040) “84 Kosi Parikrama Marg” in Uttar Pradesh on Hybrid Annuity Mode (HAM) Package VI.
The project is expected to be delivered in two years or 24 months, HG Infra said.
HG Infra Engineering is engaged in engineering, procurement and construction (EPC) business including maintenance of roads, bridges, flyovers and other infrastructure contract works.
Financials
HG Infra’s net profit rose over 11 per cent to Rs 190 crore in Q4FY24 from Rs 170.9 crore in the same quarter a year ago (Q4FY23).
Revenue rose 11.3 per cent to Rs 1,708.2 crore, from Rs 1,535.4 crore during the same period.
Its earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 12.1 per cent at Rs 332.6 crore versus Rs 296.8 crore in the previous year. The Ebitda margin came in at 19.5 per cent in Q4FY24, as opposed to 19.3 per cent in Q4FY23.
The market capitalisation of the company is Rs 11,077.13 crore, according to Bombay Stock Exchange (BSE). The company falls under the SmallCap category.
At 10:58 AM, the stocks of the company were trading 3.57 per cent higher at Rs 1,713.65. In comparison, the BSE Sensex was trading 0.51 per cent lower at 79,743.73 levels.