HG Infra up on receiving letter from East Central Railway for Bihar project

HG Infra in focus: Shares of HG Infra Engineering (HG Infra) soared as much as 3.10 per cent to hit an intraday high of 1,748 per share on Monday, July 22. 

The uptick in the stock price came after the company announced that it has secured a letter from East Central Railway regarding the appointed date for the project in Bihar. 

The appointed date is June 22, 2024, HG Infra said in a statement. 

Under the order details, the company will be responsible for the construction of double line track (3rd & 4th line) formation including earth work, blanketing, minor bridges, major bridges, electrification works and other miscellaneous works for 32.5 T axle load including Electrical TRD (2x25 KV) in Gaya-Son Nagar section (in between DFCC CH:225.300 (IR CH:475.200) to DFCC CH:292.175 (IR CH:542.075)) in DDU Division of East Central Railway in the state of Bihar.

The cost of the project is Rs 709.11 crore, and it is required to be completed in 36 months.

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.

The market capitalisation of the company is Rs 11,168.05 crore, according to Bombay Stock Exchange (BSE).

At 9:47 AM, the stock of the company was trading 1.08 per cent higher at Rs 1,713.65. In comparison, the BSE Sensex was trading 0.13 per cent lower at 80,497.60 levels.