Shares of HG Infra Engineering jumped over 5 percent to Rs 1,532 in early trade on December 11, following the announcement of a significant new order win. The company received a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH) for upgrading the NH-227B Bahuvan Madar Majha to Jagarnathpur, popularly known as the 84 Kosi Parikrama Marg, in Uttar Pradesh.
The Rs 763.11 crore project, awarded under the hybrid annuity mode (HAM), involves developing a 63.84-km stretch into two lanes with paved shoulders. The company plans to complete the construction in two years. HG Infra’s bid was notably lower than MoRTH’s estimated cost of Rs 898.5 crore.
In its regulatory filing, HG Infra stated, “We are pleased to share that HG Infra Engineering Limited (HGINFRA) has received the letter of acceptance from MoRTH.” The scope of the project includes upgrading a highway segment between Design Km 160.200 and Km 224.040, under Package VI of the hybrid annuity model.
This marks HG Infra’s second major order win in less than a month. On November 25, the company secured a Rs 1,110 crore contract from NTPC Vidyut Vyapar Nigam for procuring and installing standalone battery energy storage systems (BESS) across India.
Despite recent order wins, the company reported a decline in earnings for Q2 FY25. Net profit fell 16 percent year-on-year to Rs 80.7 crore, while revenue from operations dropped 5.5 percent to Rs 902.4 crore. However, the EBITDA margin improved to 24.3 percent from 23 percent in the previous year, indicating strong operational performance.
As of 9:20 am, HG Infra shares were trading at Rs 1,514, up by 4.1 percent on the NSE. The stock has gained an impressive 72 percent since the beginning of 2024.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
