Two decades of excellence in infrastructure with strong Q1FY25

HG Infra Engineering Limited was established in 2003 and is today a leading infrastructure development company with over two decades of expertise in the roads and highway sector. The company provides EPC services on a turnkey basis and HAM (Hybrid Annuity Model), excelling in civil construction and infrastructure projects. It has execution capabilities spanning across the country in the infrastructure development sector, seamlessly delivering excellence across diverse projects in roads, highways, railways, metro, and solar infrastructure.
With a resilient two-decade journey, the company has emerged as one of India’s fastest-growing companies having a solid client base such as NHAI, Ministry of Railways, DMRC, Adani Group, and Tata Projects reflecting commitment to fostering enduring relationships with both public and private entities. The recent Union budget has made a substantial allocation of Rs 111 lakh crores to the roads and highway sector underscoring the government’s focus on road development.
For the FY24-25, The Ministry of Road Transport has been allocated a sum of Rs 2.78 lakh crores with Rs 1.68 lakh crores earmarked for NHAI to develop national corridors. The government has also announced that it has plans to expedite new project awards, including reviving the build operator transfer ( BOT) model for 54 projects valued at over Rs 2.2 lakh crores. Recently, the Ministry of Road Transport has also announced plans to award road contracts worth Rs 5 lakh crores within the current financial year. On the other hand, in the case of Railways and Metro the Union budget of 24-25 has assigned a record allocation of Rs 2.55 lakh crores for multi-tracking corridors, replacement of old tracks, electrification and signalling system, construction of flyover and underpasses.
This highlights an extremely strong commitment by the government towards railway infrastructure and connectivity. India’s solar power sector is a very key component of the renewable energy segment with an installed capacity having increased 30-fold over the last nine years. This stupendous growth has been primarily supported by the government’s initiative towards building a target of 500 Gigawatt of renewable energy over the next 6-7 years.
While the Union budget of 24-25 has allocated a sum of Rs 10000 crores for the solar power grid, notably both the National Solar Mission and Production linked incentive scheme have been quite crucial in this expansion. The company posted decent Q1FY25 financial results with an order book of Rs 15642 crores, which is an increase of 34% from the same quarter of last year. Segment-wise, the road and highway contributed to Rs 11452 crores, metro and railway contributed Rs 2498 crores while the solar segment was Rs 1691 crores.
The consolidated revenue for the quarter stood at Rs 1528 crores reflecting an increase of 13% over Q1FY24. EBITDA stood at Rs 312 crores while profit after tax was Rs 163 crores for the first quarter of the current financial year. The HG Infra stock is currently quoting at Rs 1440 on the stock exchanges and infrastructure sector analysts are advising portfolio investors to accumulate the scrip for long-term gains.