Q1 2025 HG Infra Engineering Ltd Earnings Call Transcript
Key Points
- H.G. Infra Engineering Ltd (NSE:HGINFRA) reported a significant 34% increase in its order book, reaching INR15,642 crores as of June 30, 2024.
- The company has diversified its order book beyond roads and highways, with substantial contributions from railways, metro, and solar energy sectors.
- Strong financial performance in Q1 FY25, with standalone revenue increasing by 18.4% and consolidated revenue by 13.1% year-over-year.
- The company has secured new projects worth INR4,142 crores in highways EPC, INR763 crores in highway HAM, and INR409 crores in solar projects.
- H.G. Infra Engineering Ltd (NSE:HGINFRA) is actively pursuing opportunities in new segments like water treatment plants and desalination projects, aiming for further diversification.
- The Neelmangala-Tumkur project is facing significant delays due to land availability issues, with only 23.9% completion.
- The company's gross debt has increased to approximately INR2,015 crores on a consolidated basis, partly due to working capital requirements and mobilization advances.
- The solar projects, while promising, have a high liquidity requirement of INR6,092 crores, with significant capital infusion needed in FY25 and FY26.
- There are uncertainties regarding the timely receipt of appointed dates for several HAM projects, which could impact project execution timelines.
- The aggressive bidding strategy, particularly in the solar sector, raises concerns about maintaining high margins in future projects, especially with potential changes in government policies and market conditions.
Ladies and gentlemen, good day, and welcome to HG infra Engineering Limited Q1 FY25 earnings conference call hosted by Go India Advisors. (Operator instructions) Please note that this conference is being recorded.
And I now hand the conference over to Ms. Sana Kapoor from Go India Advisors. Thank you, and over to you, ma'am.
Thank you, Shlok. Good morning, everybody, and welcome to HG Infra Engineering Limited earnings call to discuss the Q1 FY25 results. With us, we have on the call, Mr. Harendra Singh, Chairman and Managing Director; and Mr. Rajeev Mishra, our Chief Financial Officer.
We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risks that the company faces.
May I now request Mr. Harendra Singh to take us through the company's business outlook and performance subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
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