The shares of the leading infra-construction company gained up to 7 percent after the company received an order worth Rs 716.11 Crore from the central railway.
With a market capitalization of Rs 5,971.30 crore, the shares of H.G. Infra Engineering Ltd were trading at Rs 916.25 per share, increasing around 3.35 percent as compared to the previous closing price of Rs 886.15 per share.
According to the company filing, H.G. Infra Engineering Ltd received a work order for the construction of the new BG Line Between Dhule (Borvihir) to Nardana (Approx. 49.45 Km) of Central Railway in the state of Maharashtra worth Rs 716.11 crore from the central railway. The time period of this contract is 30 months.
Looking into H.G. Infra Engineering Ltd’s financial performance, revenue increased by 20 percent from Rs 796 crore in Q2 FY23 to Rs 955 crore in Q2 FY24. During the same period, net profit increased by 17 percent, from Rs 82 crore to Rs 96 crore.
H.G. Infra Engineering Ltd has more than 2500 fleets of modern equipment with a strong business model. The company also has 21 years of execution experience in highway construction with 17 active projects and 12 HAM projects.
As of September 30, 2023, the company’s order book is at Rs 1,06,782 million. In FY 2022-23, the company’s gearing was 0.28x due to an increase in term loans to support a major investment of H2,874 million.
The Company is working on adding non-road projects to its project portfolio, and it expects non-road projects to account for 20-25 percent of its order book in the next 2-3 years.
H.G. Infra Engineering Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 29.4 percent and a return on capital employed (ROCE) of 25.4 percent.
H.G. Infra Engineering Limited (HGIEL) is an Indian road infrastructure company that provides engineering, procurement, and construction (EPC) services, as well as maintenance of roads, bridges, flyovers, and other infrastructure contract, works.
Written by:- Abhishek Singh
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