During Tuesday’s trading session, the shares of a road infrastructure company surged 5.5 percent to Rs. 1,542 on BSE, after the company secured an order worth Rs. 781.11 crores from the Ministry of Road Transport & Highways (MoRTH) to upgrade NH47 in Gujarat.
With a market capitalisation of Rs. 9,971.5 crores, at 11:27 a.m., the shares of HG Infra Engineering Limited were trading in the green at Rs. 1,528, up by nearly 4.6 percent, as against its previous closing price of Rs. 1461.5.
What’s the News:
According to the latest regulatory filings with the stock exchanges, HG Infra Engineering Limited received a letter of award (LoA) worth Rs. 781.11 crores from the Ministry of Road Transport & Highways (MoRTH).
The project is for the upgradation of an existing 6-lane road including an elevated corridor as per site requirements of NH-47 from Narol Junction to Sarkhej Junction in the state of Gujarat on Hybrid Annuity Mode (HAM).
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The length of the project is 10.63 kilometres and the construction is expected to complete in 2.5 years.
On 20th August, HG Infra Engineering was declared as an L-1 bidder by MoRTH for this project in Gujarat.
Previous Orders:
On 25th July, HG Infra Engineering was declared as an L-1 bidder by the Ministry of Road Transport and Highways (MoRTH) for a project worth Rs. 763.11 crores.
The project was for the improvement and up-gradation of a 2-lane of 63.84 kilometres, with paved shoulders configuration of newly declared NH-227B from Bahuvan Madar Majha to Jagarnathpur in Uttar Pradesh on Hybrid Annuity Mode.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 13 percent from Rs. 1,351 crores in Q1 FY24 to Rs. 1,528 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 150 crores to Rs. 163 crores, representing a growth of 8.6 percent YoY.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased from Rs. 280.7 crores in Q1 FY24 to Rs. 312.3 crores in Q1 FY25, registering a growth of 11.3 percent.
As of June 2024, the total order book of HG Infra Engineering reached Rs. 15,641.8 crores. This includes Rs. 11,452.3 crore in the roads and highways segment, Rs. 2,498 crore orders in the railway and metro segment, and Rs. 16,691.5 crore orders in the solar segment.
Stock Performance
Shares of HG Infra Engineering have delivered positive returns of nearly 53.7 percent in one year and around 68 percent in the last six months. So far in 2024, the stock has given about 80.5 percent of positive returns.
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About the Company:
H.G. Infra Engineering Limited is engaged in the business of Engineering, Procurement and Construction (EPC), maintenance of roads, bridges, flyovers and other infrastructure contract works.
Written by Shivani Singh
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