H.G. Infra Engineering (HGINFRA) Q2 24/25 earnings summary

Executive summary

• Strong operational performance in Q2 and H1 FY25, with a diversified order book across roads, highways, railways, metro, and solar projects in 13 states.

• Order book as of September 30, 2024, stands at INR 166,235 million, with a strong presence in both government and private sectors.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with statutory auditor review and compliance with SEBI regulations.

Financial highlights

• Standalone Q2 FY25 revenue grew 22.4% YoY to INR 10,645 million; H1 FY25 revenue at INR 25,703 million, up 20.1% YoY; EBITDA margin at 16.4% in Q2.

• Standalone PAT for Q2 FY25 was INR 886 million, up 43.7% YoY; H1 FY25 PAT at INR 2,282 million, up 26.7% YoY.

• Consolidated Q2 FY25 revenue at INR 9,024 million (down 5.5% YoY); H1 FY25 consolidated revenue at INR 24,304 million (up 5.4% YoY).

• Consolidated PAT for Q2 FY25 was INR 807 million (down 16% YoY); H1 FY25 consolidated PAT at INR 2,432 million (down 1.3% YoY).

• Gross debt increased to INR 884 crores standalone and INR 24,036 million consolidated, mainly due to solar project advances.

Outlook and guidance

• Targeting FY25 revenue of INR 6,000 crores, implying 17%-18% growth for the year, with stable EBITDA margins of 15%-16%.

• Expanding order book with new project wins and appointed dates declared for several large EPC and HAM projects.

• Equity commitments for HAM projects are comfortably met, supporting future growth.

• Management expects realisable value from sale of assets held for sale to be higher than carrying value, subject to regulatory approvals.