HG Infra Q4 net profit up by 48%

HG Infra Engineering Limited

Total Revenue for FY18 up by 31.9% at Rs. 13,927Million.

Total PAT for FY18 up by 57.7% at Rs. 843 Million.

Final dividend of Rs 0.50 per share (5%).

HG Infra Engineering Limited (BSE: 541019;NSE: HGINFRA), a leading player in the road construction sector, has reported results for fourth quarter and financial year ended March 31, 2018.

*Revenue for FY18 and Q4FY18 is net of GST, whereas for previous years are gross numbers

Total revenue for the quarter ended March 31,2018 stood at Rs 5,037.76 Mn, as compared to Rs 3,774.63Mn in the same period last year. Total revenue for FY18 stood at Rs 13,927.25 Mn, as compared to Rs 10,560.28Mn for FY17, a growth of 31.9% Y-o-Y. The growth has been on account of higher execution.

EBITDA in Q4FY18 stood at Rs 786.98 Mn as compared to Rs 439.37Mn in the corresponding quarter of last year. EBITDA margin improved from 11.6% in Q4FY17 to 15.6% in Q4FY18. EBITDA in FY18 stood at Rs 2,080.71Mn, up 67.2% Y-o-Y. EBITDA margin stood at 14.9% in FY18 compared to 11.8% in FY17. Improvement in margins reflects improved operational efficiency and higher share of direct contracts. In addition, change in accounting to net basis post GST also led to higher margins.

The company reported Net Profit after Tax of Rs 360.34 Mn for Q4FY18, as compared to Rs 243.41 Mn in the corresponding quarter of last year, year on year growth of 48%. PAT margin improved from 6.4% in Q4FY17 to 7.2% in Q4FY18. Net Profit for FY18 stood at Rs 842.64 Mn, as compared to Rs 534.17 Mn in FY17, Y-o-Y growth of 57.7%. PAT margin improved from 5.1% in FY17 to 6.1% in FY18. Improved profitability is on account of higher execution and better margin.

Order inflow for FY18 was Rs. 15,915.9 Mn and order book as on March 31st, 2018 stood at Rs 46,071.7 Mn. Out of new orders received during the year, one order was in the Hybrid Annuity Mode in the state of Haryana worth Rs 6,060.0 Mn, and rest all were EPC orders which includes three orders from state PWD Rajasthan (World Bank funded projects) worth Rs. 5,966.3 Mn, two orders from PWD Rajasthan under CRF scheme worth Rs. 765.4 Mn, two orders from MoRTH-Rajasthan worth Rs. 3,004.2 Mn. Out of the total order book, 75% are government contracts and 25% are from private clients. In terms of state wise, break is as follows; 50% is from Rajasthan, followed by 35% in Maharashtra and 13% from Haryana and remaining from Uttarakhand, Uttarpradesh and Arunachal Pradesh.

Total debt as 31st March 2018 stood at Rs 4,082Mn. This includes working capital debt of Rs 927Mn and term loans of Rs 2,296Mn and the balance amount of Rs 858 Mn is Unsecured Loanreceived from Promoters.

Depreciation & amortization expenses for FY18 at Rs 539.17Mn, increased by 110.6%. This has been on account of additions to plant and machinery to support higher execution. Gross block during the year increased by Rs 2,602.91 Mn.

The Board has recommended dividend of Rs 0.50 per share (5%), subject to approval of shareholders.

Commenting on performance, Harendra Singh, Chairman & Managing Director, HG Infra Engineering Limited said “FY18 was a historic year for us as we came out with IPO which received overwhelming response. In terms of business performance,we have reported good growth in revenue and profitability on the back of robust order book and high operational efficiency. We are very excited about the growth prospects in the sector, and are confident that we are well positioned to tap the opportunity. We have invested in plant & machinery, manpower and technical capabilities to prepare ourselves for the growth going forward. We would continue to focus on good projects with high margins in order to create immense value for our investors and partners”.

HG Infra is a leading player in the roads & highways space with an execution track record of over 15 years. HG provides engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis and undertaking civil construction and related infrastructure projects, in the road construction space.With 28 orders under execution, the Company has presence in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh. The Company has built a robust business model built around complete integration, large fleet of in-house equipment and skilled manpower.