HG Infra Engineering shares tank 8% on weak Q2 show

HG Infra Engineering shares have been on a stick patch of late, slipping a massive 26 percent in the last three months.

Shares of HG Infra Engineering tanked 8 percent to Rs 1,180 in morning trade on November 12 after the company reported a 16 percent year-on-year drop in net profit, coming in at Rs 80.7 crore. In the same period last year, the company recorded Rs 96.1 crore in net profit, according to a regulatory filing.

Revenue from operations declined by 5.5 percent to Rs 902.4 crore, compared to Rs 954.5 crore a year earlier.

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At the operational level, EBITDA saw a slight dip, down 0.3 percent to Rs 219.5 crore from Rs 220.1 crore in Q2 FY24. The EBITDA margin, however, improved to 24.3 percent from 23 percent in the previous year. EBITDA refers to earnings before interest, tax, depreciation, and amortisation.

In August, HG Infra secured the lowest bid for a road upgrade project in Gujarat, which spans a 10.63-km stretch along National Highway 47. The Rs 781.11 crore bid was lower than the estimated project cost of Rs 883.24 crore set by the Ministry of Road Transport and Highways. The project will be developed under the hybrid annuity model, with a construction timeline of around 2.5 years.

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Headquartered in Rajasthan, HG Infra provides infrastructure construction services, including highways, roads, bridges, and civil projects, as well as land development and water pipeline projects.

At about 10:20 am, shares of the company were trading at Rs 1,195, down 7 percent from the last close on the NSE. HG Infra Engineering shares have been on a stick patch of late, slipping a massive 26 percent in the last three months.

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