HG Infra stock price up 7% on inking MoU with Ultra Vibrant Solar Energy

HG Infra in focus: Shares of HG Infra were buzzing in trade on Tuesday as they rallied up to 6.65 per cent to hit an intraday high of 1,799.05 per share on BSE.

The uptick in the stock price came after the company announced that it has signed a Memorandum of Understanding (MoU) with Ultra Vibrant Solar Energy.

In an exchange filing, HG Infra said, “We wish to inform you that H.G. Infra Engineering Limited has entered into a Memorandum of Understanding dated July 08, 2024 with Ultra Vibrant Solar Energy Private Limited for acquiring shares or voting rights in the project companies by way of incorporating new companies or by taking shares of the existing company for the execution of the solar power plants project.”

HG Infra further said that it will invest in the future for the expansion of business and set up of Solar Power Plants. 

Meanwhile, Ultra Vibrant Solar Energy Private Limited has been awarded the new solar projects from Jodhpur Vidyut Vitran Nigam Limited (JDVVNL) for 83.02 MW (AC), which is proposed to be taken over by HG Infra, the company added.

The HG Infra Engineering is engaged in engineering, procurement and construction (EPC) business including maintenance of roads, bridges, flyovers and other infrastructure contract works. 

Financial performance

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.

At 11:51 AM, the stock of the company was trading 1.62 per cent higher at Rs 1,714.05. In comparison, the BSE Sensex was up 0.38 per cent at 80,267 levels.