H.G. Infra secures order worth ₹716.11 crore from Central Railway, shares rise over 4%

H.G. Infra Engineering’s shares jumped over 3% and were trading at ₹1,556 per share after the company announced that it won an order from the Central Railway worth ₹716.11 crore. Under the order, the company will construct a new BG line between Dhule (Borvihir) to Nardana section of the Central Railway.

The line will be approximately 49.45 kilometers and the project will be executed in an engineering, procurement, and construction (EPC) mode. The company reported that the project has a construction period of 30 months.

Earlier this week, the company informed that it had won an order from the Ministry of Road Transport & Highways (MoRTH) worth ₹781.11 crore. The project is for the upgradation of the existing 6-lane road which includes an elevated corridor in the State of Gujarat. The project will be undertaken in a Hybrid Annuity Mode (HAM) and will be constructed in 2.5 years.

In Q1FY25, H.G. Infra reported an 8.1% year-on-year (YoY) rise in net profit to ₹162.5 crore. The company’s consolidated revenue from operations climbed 13.1% YoY to ₹1,528 crore.

During the quarter, the company reported an 11.3% YoY rise in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹312 crore. The EBITDA margin for the quarter contracted marginally to 20.44% compared to 20.78% in the corresponding period last year. Meanwhile, the net profit margin contracted to 10.64% from 11.13% in the same period last year.

At the end of June 30, 2024, the company’s order book stood at ₹15,641 crore. 91% of the order book is made up of government projects. 72% of the projects are on a HAM basis while 28% or on an EPC mode. Highway projects account for 73% of the total orders while railway and solar projects account for 16% and 11%, respectively.

Shares of the company have risen by nearly 85% since the beginning of the year. The stock has gained over 63% in the past year.