HG Infra stock zooms 6% on securing highway contract in UP; key details

HG Infra Engineering said that it has has received a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH) for the upgrade of the newly declared NH-227B

Shares of HG Infra Engineering rose as much 5.73 per cent at Rs 1,539.80 a piece on the BSE in Wednesday’s intraday deals. This came after the company on Tuesday said that it has has received a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH) for the upgrade of the newly declared NH-227B Bahuvan Madar Majha to Jagarnathpur, also known as the '84 Kosi Parikrama Marg,' in Uttar Pradesh.

 

The project, awarded under the hybrid annuity mode (HAM), involves the development of a 63.84 km stretch into two lanes with paved shoulders. HG Infra’s bid project cost is Rs 763.11 crore, while MoRTH's estimated cost is Rs 898.5 crore, the company said in an exchange filing on Tuesday. The project has a construction period of 2 years. 

 

In the recently concluded second quarter of financial year 2024-25 (Q2FY25) HG Infra’s profit dropped 16 per cent year-on-year (Y-o-Y) to Rs 80.7 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 96.1 crore in the September quarter of financial year 2024 (Q2FY24).

 

The company’s revenue from operations dropped 5.5 per cent Y-o-Y to Rs 902.4 crore in the September quarter of FY25, from Rs 954.5 crore in the September quarter of FY24. At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), fell marginally (0.3 per cent) annually to Rs 219.5 crore in Q2FY25, from Rs 220.1 crore in Q2FY24. 

 

However, Ebitda margin expanded 130 basis points (bps) to 24.3 per cent in the September quarter of financial year 2025, from 23 per cent in the September quarter of financial year 2024. 

 

The company has a total market capitalisation of Rs 9,882.87 crore. Its shares are trading at a price to earnings multiple of 16.65 times and at an earning per share of Rs 91.09. 

 

 At 10:10 AM; the shares of the company were trading 4.13 per cent higher at Rs 1516.45  a piece. By comparison, the BSE Sensex was down 0.01 per cent. 

 

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