HG Infra bags ₹716 cr railway order; stock jumps 5%

HG Infra Engineering shares surged 5.1% to ₹1,579.00 apiece today on the BSE after the company won a ₹716 crore project from Central Railway in Maharashtra.

At the time of reporting, the company’s stock was trading at ₹1,564.00 apiece on the BSE on Friday, reflecting a 4.11% increase from its previous close of ₹1,502.30. The stock opened higher today at ₹1,569.95, in contrast with the weaker broader market. The construction major’s market cap stands at ₹10,191.76 crore. Over the past month, the company’s stock dropped 0.41%, while it surged 78.75% in the last six months, and gained 84.56% year-to-date (YTD).

The company informed exchanges that the contract involves constructing a 49.45 km broad gauge (BG) line between Dhule (Borvihir) and Nardana under the EPC (engineering and procurement contract) mode, with a 30-month deadline for completion.

Earlier on Monday, HG Infra had secured a contract worth ₹781.11 crore from the Ministry of Road Transport & Highways (MoRTH) for upgrading a 10.63 km section of NH-47 in Gujarat, between the Narol and Sarkhej junctions. This project includes the construction of an elevated corridor and follows the hybrid annuity model (HAM), with a completion timeframe of 2.5 years.

In August, the company became the lowest bidder for a road upgrade project in Gujarat valued at ₹883.24 crore, securing the contract with a bid of ₹781.11 crore.

The company posted a consolidated net profit of ₹162.56 crore in Q1FY25, up from ₹150.38 crore in the same quarter the previous year. Its revenue from operations for the quarter ending June 2024 reached ₹1,528 crore, compared to ₹1,351.15 crore in the corresponding period last year. The company’s total expenses reached ₹1,307 crore in June 2024, an increase from ₹1,153.8 crore in June 2023.

In terms of standalone results, net profit of HG Infra Engineering grew by 17.87%, reaching ₹139.54 crore in June 2024 compared to ₹118.38 crore in the same period last year. Net sales rose to ₹1,505.88 crore in June 2024, marking an 18.45% increase from ₹1,271.34 crore in June 2023. EBITDA for June 2024 stood at ₹246.47 crore, up 18.17% from ₹208.57 crore in June 2023. HG Infra Engineering's EPS increased to ₹21.41 in June 2024 from ₹18.16 in June 2023.