HG Infra Engineering shares dropped 8% to Rs 1,180 in early trade on November 12 after the company reported a disappointing Q2 earnings report.
By around 9:50 am, HG Infra shares were trading with over 8% decline at Rs 1,180.40 on the BSE. The stock has faced considerable pressure recently as it slipped more than 16% over the past month. However, on a six-month basis, the stock is up 2.86%.
The company, on Monday, reported a 16% year-on-year decline in net profit to Rs 80.7 crore, down from Rs 96.1 crore in the same period last year, according to the company’s regulatory filing.
On the other hand, the company’s revenue from operations also declined 5.5% to Rs 902.4 crore from Rs 954.5 crore a year ago.
Operationally, HG Infra’s EBITDA dipped slightly by 0.3% to Rs 219.5 crore compared to Rs 220.1 crore in Q2 FY24. However, EBITDA margin improved to 24.3% from 23%, indicating the company was able to cost control better in the quarter.
Based in Rajasthan, HG Infra Engineering specializes in infrastructure construction. The company, which has over 21 years of experience and was founded by Hodal Singh, a construction industry veteran with 45 years of experience, primarily develops highways, roads, bridges, and various civil projects, as well as land development and water pipeline construction. It has execution capabilities spanning PAN India across more than 15 states.
In August, HG Infra emerged as the lowest bidder for a Rs 781.11 crore road upgrade project on a 10.63-km stretch of National Highway 47 in Gujarat. The bid was below the Ministry of Road Transport and Highways’ estimate of Rs 883.24 crore, and the project is expected to be completed within 2.5 years under a hybrid annuity model.
