Shares of HG Infra Engineering rose by 6.5% to an intraday high of Rs 1,363 on November 25 after the company secured a major contract from NTPC Vidyut Vyapar Nigam Ltd. The project, worth Rs 1,110 crore, involves procuring and installing 500 MW/1000 MWh standalone battery energy storage systems (BESS) across India, supported by viability gap funding.
HG Infra will handle 185 MW/370 MWh of the total capacity at a fixed tariff rate of Rs 2,38,000 per MW/month. The project is expected to be completed in 1.5 years, marking a significant milestone for the company in the renewable energy sector.
At 10:50 AM, HG Infra’s shares were trading 5% higher at Rs 1,338. The stock has risen 23% year-to-date, outperforming the Nifty 50, which has gained 12% in the same period. However, the stock has been experiencing negative monthly returns since June.
Financial Highlights
Despite the positive development, HG Infras reported a 16% year-on-year decline in its standalone net profit to Rs 80.7 crore as against Rs 96.1 crore reported during the same quarter a year ago. Revenue from operations was down 5.5% at Rs 902.4 crore as compared to Rs 954.5 crore in Q2FY24.
Operational: EBITDA, too, saw a marginal fall from Rs 220.1 crore last year to Rs 219.5 crore. But the operating margin expanded at 24.3 per cent from 23 per cent of the previous year, pointing to better efficiency.
HG Infra’s recent contract win is expected to enhance its order book and position it strongly in the growing renewable energy and infrastructure sectors.
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Source: Moneycontrol
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