11 Dec , 2024 By : Debdeep Gupta
Shares of HG Infra Engineering rallied over 5 percent to Rs 1,532 in morning trade on December 11 after the company announced that it had secured a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH) for upgrading the newly-declared NH-227B Bahuvan Madar Majha to Jagarnathpur, popularly known as the 84 Kosi Parikrama Marg, in Uttar Pradesh.
The project, awarded under the hybrid annuity mode (HAM), entails the development of a 63.84-km stretch into two lanes with paved shoulders. HG Infra’s bid for the project is valued at Rs 763.11 crore, against MoRTH's estimated project cost of Rs 898.5 crore. The company aims to complete the construction within two years.
"We are pleased to share that HG Infra Engineering Limited (HGINFRA) has received the letter of acceptance from MoRTH," the company stated in a regulatory filing. The detailed scope of the project involves upgrading the highway segment between Design Km 160.200 and Km 224.040, labeled Package VI, under the hybrid annuity model.
This is the company's second order win in less than a month. On November 25, the company announced receiving a Letter of Award (LoA) from NTPC Vidyut Vyapar Nigam. The contract, valued at approximately Rs 1,110 crore, involves procurement and installation of 500 MW/1000 MWh standalone battery energy storage systems (BESS) across India.
Meanwhile, HG Infra Engineering reported a 16 percent year-on-year decline in net profit to Rs 80.7 crore for the second quarter ended September 30, 2024, compared to Rs 96.1 crore in the same period last year. Revenue from operations dropped 5.5 percent YoY to Rs 902.4 crore from Rs 954.5 crore.
Despite the revenue dip, the company’s operating performance showed resilience, with EBITDA marginally decreasing by 0.3 percent to Rs 219.5 crore in Q2 FY25, against Rs 220.1 crore in the prior year. The EBITDA margin improved to 24.3 percent, compared to 23 percent in the year-ago quarter.
At about 9:20 am, shares of the company were trading at Rs 1,514, higher by 4.1 percent from the last close on the NSE. HG Infra Engineering stock has rallied 72 percent since the start of the year.
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