Shares of HG Infra Engineering Ltd surged 6% on Wednesday, 11 December, after the company announced securing a Letter of Acceptance (LoA) from the Ministry of Road Transport and Highways (MoRTH). 

In its regulatory filing, the company has received a LoA from MoRTH for improvements at the recently announced NH-227B Bahuvan Madar Majha to Jagarnathpur, also known as the ’84 Kosi Parikrama Marg,’ in Uttar Pradesh.

As part of the project, which was granted under the hybrid annuity mechanism (HAM), a 63.84-kilometer section will be divided into two lanes with paved shoulders. According to a Tuesday exchange filing, MoRTH’s projected project cost is Rs 898.5 crore, whereas HG Infra’s bid project cost is Rs 763.11 crore. The project will be constructed over a two-year timeframe.

In the September quarter of fiscal year 2025 (Q2FY25), HG Infra’s profit decreased 16% year-over-year (Y-o-Y) to Rs 80.7 crore, down from Rs 96.1 crore in the September quarter of fiscal year 2024 (Q2FY24).

The company’s operating revenue decreased 5.5% year over year to Rs 902.4 crore in the September quarter of FY25 from Rs 954.5 crore in the same period the previous year. In terms of operations, profits before interest, tax, depreciation, and amortization (Ebitda) decreased slightly (by 0.3% per year) from Rs 220.1 crore in Q2FY24 to Rs 219.5 crore in Q2FY25 instead. 

In contrast, the EBITDA margin increased by 130 basis points (bps) to 24.3% in the September quarter of the fiscal year 2025 from 23% in the same quarter the previous year. 

The engineering, procurement, and construction (EPC) business of HG Infra Engineering includes the upkeep of flyovers, bridges, highways, and other infrastructure contract projects.

At 12:22 pm, the shares of HG Infra were trading 4.45% higher at Rs 1,518.80 on NSE.

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