HG Infra Engineering shares jump 5% on bagging ₹447 crore project from Indian Railways

HG Infra Engineering shares jumped over 5% in morning trade on Monday after the construction engineering company announced receiving a project worth ₹447 crore from Indian Railways.

In a filing to the stock exchanges, the company said that it has received the Letter of Acceptance (LoA) from South Central Railway for a ₹447.11-crore project.

HG Infra Engineering will carry out engineering, procurement and construction (EPC) work for track doubling between Karanjgaon and Aurangabad stations in Maharashtra.

The project also entails electrification and signalling works in addition to the construction work between the two stations in the Nanded Division of the South-Central Railway, the company informed the stock exchanges on March 2.

The project will be carried out over 30 months.

Previously, East Central Railways declared HG Infra Engineering as an L-1 bidder for a ₹772.70 crore-estimated EPC work. The company bid on a project cost of ₹709.11 crore.

The project entails, "Construction of double line track (3rd & 4th line) formation including earth work, blanketing, minor bridges, major bridges, electrification works and other miscellaneous works for 32.5 T axle load including Electrical TRD (2x25 KV) in Gaya-Son Nagar section (in between DFCC CH:225.300 (IR CH:475.200) to DFCC CH:292.175 (IR CH:542.075)) in DDU Division of East Central Railway in the state of Bihar.”

The project will be executed in over 36 months.

HG Infra Engineering showed stable growth in its performance during the quarter ending in December 2023. The firm's net profit jumped 84.3% to ₹205.4 crore in Q3FY2024 from ₹111.4 crore in the corresponding quarter of the previous financial year.

Its total income in Q3FY24 grew by 18.87% to ₹1,348.9 from ₹1,134.7 crore in the year-ago period.

Incorporated in 2003, HG Infra Engineering is a leading infrastructure development company with expertise in EPC services focused on civil construction and related infrastructure projects on a turnkey basis and HAM (Hybrid Annuity Model).

Shares of HG Infra Engineering closed marginally up 0.26%, on NSE.