Shares of this infrastructure stock surged by more than 3 percent to Rs.1,369.90 per share after securing a significant order for a 500 MWh Battery Energy Storage project from Gujarat Urja Vikas Nigam Ltd.
Share Price Movement
During Monday’s trading session, H.G. Infra Engineering Ltd.’s (HGIEL) share price surged 3 percent to an intraday high of Rs.1,369.90 per share, up from its previous close of Rs.1,331.15 apiece. The price has since retreated and is currently trading at Rs.1,364.45 per share.
Rationale for the Rise
H.G. Infra Engineering Limited has been selected as a qualified bidder by Gujarat Urja Vikas Nigam Ltd for a significant part of the 500 MW/1000 MWh Standalone Battery Energy Storage Systems project in Gujarat.
Under the Tariff-Based Global Competitive Bidding (Phase-IV) with Viability Gap Funding support, HGINFRA will be responsible for setting up 250 MW/500 MWh of the storage systems. This domestic contract is to be completed within 18 months. The project marks a significant step in India’s energy storage sector.
Order Book & Domestic Presence
As of H1 FY25, our order book stands at Rs.16,624 crores, with Rs.12,326 crores from roads and highways, Rs.2,387 crores from railways and metro, and Rs.1,911 crores from solar projects. Our portfolio is well-balanced, with 67 percent EPC and 33 percent HAM projects, and we are active across 13 states, showcasing a strong geographical presence.
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Revenue Breakup
The company’s revenue is split between 9 percent from private clients and 91 percent from government projects. The revenue breakdown includes 73 percent from highways, 16 percent from railways, and 11 percent from solar projects.
In terms of project models, 72 percent of revenue comes from the Hybrid Annuity Model (HAM), while 28 percent is derived from Engineering, Procurement, and Construction (EPC) contracts.
Financial performance
For the quarter ended September 2024, H.G. Infra Engineering Limited reported revenue of Rs.902 crore, down 5.5 percent from Rs.955 crore in Q2 FY24. Net Profit fell to Rs.81 crore, falling 16 percent from Rs.96 crore in the same period.
About the company
H.G. Infra Engineering Limited (HGIEL) is an infrastructure construction firm focused primarily on executing highway, road, and bridge projects using Engineering, Procurement, and Construction and Hybrid Annuity Modelapproaches.
Written by – Siddesh S Raskar
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