Share price of a leading infrastructure development company moved up by nearly 5.8% to Rs. 972.4 in the morning trading session of March 4th, compared to its previous close of Rs. 922.4, after the company announced receiving a letter of acceptance from South Central Railway.
With a market capitalisation of Rs. 6,084 crores, at 12:54 p.m. the shares of HG Infra Engineering Ltd. were trading in the green at Rs. 930.95, up by 0.93 percent.
In the last one year, the company has delivered positive returns of about 21.42 percent and more than 9.35 percent, so far in 2024. However, it has given negative returns of nearly 1.3 percent in the last six months.
According to recent regulatory filings with the stock exchanges, H.G. Infra Engineering Limited has received a letter of acceptance (LoA) from South Central Railway.
The LoA received by the company is for the project of doubling of track between Karanjgaon station and Aurangabad stations, as well as electrification and signalling work in connection with the Aurangabad-Ankai Doubling Project in the Nanded Division of South-Central Railway.
The project is worth Rs. 447.11 crore and is expected to be completed in 30 months.
As per the filings of March 1st, East Central Railway has declared H.G. Infra Engineering Limited as the lowest bidder for an EPC project with an estimated cost of Rs. 772.7 crore.
In terms of financials, the revenue from operations of the company grew by nearly 42.93% QoQ from Rs. 955 crore in Q2 FY23-24 to Rs. 1,365 crore in Q3 FY23-24, accompanied by a 6.25% increase in the net profit from Rs. 96 crore in Q2 FY23-24 to Rs. 102 crore in Q3 FY23-24.
As of December 2023, FIIs hold 1.56 percent of the shares, whereas DIIs hold 12.45 percent of the shares in the company, aggregating to 14.01 percent of the institutional holdings.
Established in 2003, H.G. Infra Engineering Limited is engaged in providing Engineering, Procurement and Construction (EPC) services, along with the maintenance of roads, bridges, flyovers and other infrastructure contract works.
Written by Shivani Singh
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