LoA Worth ₹1,026 Crore Received by HG Infra’s JV

On March 19, 2024, HG Infra Engineering Ltd (HG Infra), a prominent player in the Indian infrastructure sector, witnessed a surge in its stock price. The share of HG Infra opened at ₹941.95 as compared to the previous close of ₹893.45. This upswing comes on the heels of a promising development: the company, in a joint venture (JV) with Stockwell Solar Services, secured a Letter of Award (LoA) from Jodhpur Vidyut Vitran Nigam for four projects of Solar Business worth ₹1,026 crore. Let’s delve deeper into this development and explore its potential impact on HG Infra.

The company stated that the projects comprise designing, surveying, supplying, installing, testing, commissioning, operating, and maintaining solar power systems for a 25-year period. The Kisan Urja Suraksha Evam Utthan Mahabhiyan (KUSUM) initiative has four projects that have a 12-month deadline. The ₹156 crore first solar plant will have a 36.72 megawatt (MW) capacity overall.

The estimated cost of the second project, which would have a 93.08 MW total capacity, is ₹396 crore. The combined capacity of the third and fourth projects, which are expected to cost ₹314 crore and ₹160 crore, respectively, will be 73.96 MW and 37.76 MW.

The JV leverages HG Infra’s expertise in construction and engineering, along with Stockwell Solar Services’ knowledge in the renewable energy domain. This strategic collaboration positions them favourably for project execution and potentially opens doors to future opportunities in the booming solar power sector.

During Q3 FY2024, the company witnessed a YoY growth of 16.7% in revenue to ₹1,386.26 crore. H.G. Infra Engineering Ltd has recorded a 44.75% jump in its revenue on a quarterly growth basis.

In addition, net profit for the quarter amounted to ₹102.05 crore, reflecting a slump of 22.03% on a YoY basis. On a quarterly growth basis, the company has generated a 6.17% jump in its net profits.

About HG Infra Engineering Ltd

H.G. Infra Engineering Limited (HGIEL) operates a road infrastructure business. The company is primarily involved in the business of Engineering, Procurement and Construction (EPC) Services, maintenance of roads, bridges, flyovers and other infrastructure contract works.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.