Several infrastructure stocks have made significant strides in reducing their debt levels, enhancing their financial stability, and positioning themselves favorably in the market. This strategic move not only improves their balance sheets but also makes them attractive options for potential investors.
Here are three such companies which have reduced their debt to a great extent:
Hindustan Construction Company Ltd
With a market capitalization of Rs.6,064.4 crore, Hindustan Construction Company Ltd’s share price closed at Rs.36.1 on Friday, rising nearly 1.2 percent from its previous close.
Hindustan Construction Company Ltd significantly strengthened its financial position by reducing gross debt from approximately Rs.5,512 crore in FY23 to Rs.2,223 crore in FY24, achieving a remarkable 60 percent reduction.
HCC’s operational cash flow has shown notable improvement, reflecting stronger cash management strategies. The company remains committed to large-scale infrastructure projects, sustaining an order book of Rs.10,475 crore while also considering bids totaling Rs.10,400 crore. Management continues to emphasize quality and profitability as they work to expand the project pipeline for FY25.
In Q2 FY25, the company reported revenues of Rs.1,407 crore, falling 23 percent YoY, while net profits surged to Rs.64 crore from the net loss of Rs.3 crore.
GPT Infraprojects Ltd
With a market capitalization of Rs.1,724.2 crore, GPT Infraprojects Ltd’s share price closed at Rs. 136.45 on Friday, rising around 2.3 percent from its previous close.
GPT Infraprojects Ltd significantly strengthened its financial position by reducing gross debt from approximately Rs.252 crore in FY23 to Rs.193 crore in FY24, achieving a remarkable 24 percent reduction.
This improvement was largely due to increased operational efficiency and improved cash flow management, enabling the company to reduce existing liabilities. Furthermore, a recent credit rating upgrade by CRISIL highlights the company’s improved financial stability, paving the way for more favorable financing options.
The company aims to further lower its debt to around Rs.50 crore soon, which is expected to generate significant interest savings.
In Q2 FY25, the company reported revenues of Rs.288 crore, rising 23 percent YoY, while net profits surged 7 percent to Rs.15 crore in the same period.
SPML Infra Ltd
With a market capitalization of Rs.1,121.6 crore, SPML Infra Ltd’s share price closed at Rs.189 on Friday, rising 1.5 percent from its previous close.
SPML Infra Ltd significantly strengthened its financial position by reducing gross debt from approximately Rs.1,771 crore in FY23 to Rs.549 crore in FY24, achieving a remarkable 70 percent reduction.
SPML Infra Ltd achieved an impressive 70 percent reduction in gross debt, lowering it from around Rs.1,771 crore in FY23 to Rs.549 crore in FY24 through various strategic actions.
These included signing a Master Restructuring Agreement with the National Asset Reconstruction Company (NARCL), securing substantial arbitration awards under the Vivad Se Vishwas Scheme, and divesting non-core assets.
Promoters contributed an additional Rs.80 crore, while a focus on high-margin projects and enhanced operational efficiency further strengthened cash flow and financial stability.
In Q2 FY25, the company reported revenues of Rs.176 crore, falling 31 percent YoY, while net profits surged to Rs.13 crore from no profits in the same period.
Written by – Siddesh S Raskar
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