HG Infra surges upon securing an order from Adani Road Transport worth nearly Rs 5000 crore

HG Infra surges upon securing an order from Adani Road Transport worth nearly Rs 5000 crore

by 5paisa Research Team Last Updated: 2022-06-07T15:58:19+05:30

The contract is to be completed within 820 days from the appointed date, which shall be declared by Uttar Pradesh Expressways Industrial Development Authority.

HG Infra Engineering Limited, a construction engineering company, announced today that it has received the Letter of Award (LOA) dated June 06, 2022, from Adani Road Transport Limited.

This project entails the execution of civil & associated works on an engineering, procurement & construction (EPC) basis for the development of access controlled six-lane (Expandable to Eight lane) greenfield `Ganga Expressway' in the State of Uttar Pradesh on Design, Build, Finance, Operate and Transfer (DBFOT) (Toll) basis under Public Private Partnership. The contract price stands at Rs 4,970.99 crore and is to be completed within 820 days from the appointed date, which shall be declared by Uttar Pradesh Expressways Industrial Development Authority.

In Q4FY22, on a consolidated basis, the company’s net revenue increased 11.9% QoQ to Rs 1064 crore. However, owing to a relatively higher rise in expenses, the PAT increased by only 3.38% to Rs 103.9 crore. Geographically, 20% of revenue came from North India, 40% came from South India, whereas the country’s eastern and western markets contributed 28% and 12% each.

In the last 4 years, the company has invested nearly Rs 360 crore in plant & machinery. At present, the company is trading at a TTM PE of 9.65x, as against the industry PE of 37.38x. In FY22, the company delivered an ROE & ROCE of 26.4% and 26.3%, respectively. Its order inflows during the full fiscal year FY22 stood at Rs 4328 crore.

Post the announcement of this order win, the company witnessed an increase in share trading activity. At the time of market close, the shares of H.G. Infra Engineering Limited were trading at Rs 581.05, an increase of 3.28% from the previous closing price of Rs 562.60 on BSE. The company has a 52-week high & low of Rs 830.80 & Rs 357.90 on BSE.


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