H.G. Infra Engineering Ltd Q4 FY25 Earnings Analysis

- Revenue growth for FY '26 is expected at 15% to 17% year-on-year. - For the upcoming quarters, revenue growth is targeted at 17% to 18%. - Order inflow guidance for FY '25 is INR11,000 to 12,000 crores, with INR8,200 crores already secured. - Execution for FY '26 is expected around INR7,000 crores with an order inflow of about INR10,000 crores. - From existing order book (around INR11,000 crores excluding MSRDC), INR6,500 crores+ revenue is forecasted for FY '26. - Key projects contributing to growth include railway (INR2,300-3,300 crores order book portion), solar (INR1,500 crores to complete), HAM projects (INR5,000 crores balance), and ongoing Ganga & solar projects. - Post-monsoon execution ramp-up expected for new projects starting around May-June. - Margins expected steady at 15%-16%.

- Company targets 17%-18% revenue growth in upcoming quarters and FY '26, maintaining previous guidance. - EBITDA margin expected steady at 15%-16%. - Solar EPC margins around 18% with equity IRR of 14%+. - Battery Energy Storage System (BESS) projects target equity IRR of 14%-15% with EPC margins 10%-13%. - Railway projects and river linking initiatives present significant upcoming opportunities contributing to growth. - Order inflow expected between INR11,000 to 12,000 crores for FY '25, with INR8,200 crores secured already. - New project wins (e.g., New Delhi Railway Station redevelopment) and diversification into green energy and transmission sectors aim to bolster earnings. - EBITDA shows increasing trend: Q3 FY '25 stands at INR250 crores with 16.6% margin, nine-month EBITDA at INR668 crores (16.4% margin). - PAT margins stable around 9%. - Overall, sustained operational efficiencies, project selection, and expanding sectoral presence drive positive earnings outlook.

- Capex done in 9 months FY '25 is around INR92 crores; Q4 anticipated capex is INR5-10 crores. - For FY '26, expected capex is INR40-50 crores, with no major jump planned. - Strategic investment includes equity requirement of around INR450 crores over next 2 years for battery energy storage projects. - Total equity investment in projects like solar and batteries is significant (e.g., INR700 crores equity for solar projects). - Company is looking to monetize 5 projects with invested equity of about INR770 crores, with ongoing discussions with potential buyers. - Exploring new verticals including renewable energy, transmission, and water sectors for growth and diversification. - Battery Energy Storage System (BESS) projects involve INR500 crores EPC work and target 14-15% equity IRR with EPC margins around 10-12%.

- The company expects equity requirement of around INR450+ crores over the next 2 years for the battery energy storage project. - Discussions have started with potential investors to monetize about 5 projects with total invested equity roughly around INR770 crores. - For debt, the stand-alone gross debt currently stands at INR1,329 crores (including working capital and term loans). - The company plans to reduce working capital debt to INR600-700 crores by March 2025 as solar project disbursement improves. - No major capex planned next year except INR40-50 crores. - Overall, no mention of fresh large-scale debt or equity raising, but active equity monetization of certain projects and planned debt normalization indicate ongoing fundraising activities.

- Current order book stands at INR 15,080 crores. - Composition: Roadways and highways INR 11,235 crores; Railways and metro INR 2,289 crores; Solar INR 1,556 crores. - Order book mix: 33% HAM projects, 67% EPC projects. - Segment-wise contribution: Roads and highways 75%, Railways 15%, Solar 10%. - New order inflow for FY '25 targeted at INR 11,000-12,000 crores. - Till date FY '25, secured approximately INR 8,200 crores including the New Delhi Railway Station redevelopment project. - Pipeline for bidding around INR 72,000 crores of projects: Highways INR 50,000+ crores, Railways INR 18,000 crores, Solar/Battery around INR 8,000 crores. - INR 8,200 crores of new projects received; additional bids of INR 3,000-4,000 crores anticipated by March.