Any current/future new fundraising through debt or equity?

No explicit mention of new fundraising through debt or equity in the near term. Current gross standalone debt is INR470 crores (including working capital and NCD). For HAM projects, total equity requirement until FY '26 is INR1,331 crores; INR604 crores already infused and INR74 crores projected to be infused in FY '24. Company prefers to manage funds through internal arrangements, e.g., receiving payments via SPVs to reduce SPV debt and minimize interest cost. Focus on optimizing cash usage through advanced procurement and avoiding overdraft utilization. Capex guidance is moderate (around INR

Any current/future capex/capital investment/strategic investment?

FY'24 capex already done, exceeding INR100 crores; no significant addition planned this year. For FY'25, targeted capex is minimal, around INR75 crores. INR196 crores balance equity planned from FY'25 to FY'27, partly linked to Japan projects. Additional equity investment of approximately INR74 crores expected in Q4 FY'24. Total equity investment target around INR1,331 crores with INR601 crores completed by Dec 31, balance INR730 crores pending. Strategic move into solar projects in Rajasthan with small-scale projects under Kusum Yojana, aiming for contract execution with government power purc

Future growth expectations in sales/revenue/volumes?

For FY '24, H.G. Infra expects around 17-20% revenue growth, targeting roughly INR6,000 crores. The company anticipates closing FY '24 with revenue between INR5,000 to 5,200 crores. Guidance for FY '25 is maintained at about INR6,000 crores in revenue. For FY '25 and beyond, the company expects order inflows of approximately INR10,000 crores. Railway projects, including orders bidded worth INR14,000 crores with expected awards around INR10,000 crores, will contribute significantly to revenue. Government infrastructure initiatives such as Vision 2047 and increased capex for highways and railway

Future growth expectations in earnings/operating earnings/profits/EPS?

PAT at standalone level expected to be around 9.5% to 10%, potentially rising to 11% in coming quarters. EBITDA margins to remain stable around 15.5% to 16% with consistent revenue growth of 17-20% Y-o-Y. Finance cost expected to remain stable around INR60-65 crores per quarter; depreciation to normalize as capex declines. Capex to be relatively low going forward, around INR75 crores annually post FY'24. Order inflow expected to be around INR6,000 crores in FY'24, increasing to INR10,000 crores in FY'25 due to aggressive bidding and new projects. Railways projects contributing to div

Current/ Expected Orderbook/ Pending Orders?

As of December 2023, H.G. Infra's order book stood at INR 9,626 crores across 11 states. Order book composition: 51% EPC, 37% HAM, and 12% railway/metro projects. 16 bids worth around INR 14,000 crores are pending results. Total upcoming bidding opportunities: INR 60,000-70,000 crores in MSRDC, INR 50,000+ crores at NHAI, and INR 40,000 crores in Ministry projects. Around INR 25,000 crores of railway projects expected to be awarded soon. The company has bid for 52 tenders worth INR 30,572 crores till January 2024. Expecting order additions of around INR 6,000 crores in the current financial ye

H.G. Infra Engineering LtdQ4 FY24

H.G. Infra Engineering Ltd Q4 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹526P/E: 13.4Market Cap: ₹3.5K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→For FY '24, H.G. Infra expects around 17-20% revenue growth, targeting roughly INR6,000 crores.
→The company anticipates closing FY '24 with revenue between INR5,000 to 5,200 crores.
→Guidance for FY '25 is maintained at about INR6,000 crores in revenue.
→For FY '25 and beyond, the company expects order inflows of approximately INR10,000 crores.
→Railway projects, including orders bidded worth INR14,000 crores with expected awards around INR10,000 crores, will contribute significantly to revenue.
→Government infrastructure initiatives such as Vision 2047 and increased capex for highways and railways support growth prospects.
→The company foresees continued healthy execution and operational efficiency to drive future sales expansions.

Margin guidance

Category 3

→PAT at standalone level expected to be around 9.5% to 10%, potentially rising to 11% in coming quarters.
→EBITDA margins to remain stable around 15.5% to 16% with consistent revenue growth of 17-20% Y-o-Y.
→Finance cost expected to remain stable around INR60-65 crores per quarter; depreciation to normalize as capex declines.
→Capex to be relatively low going forward, around INR75 crores annually post FY'24.
→Order inflow expected to be around INR6,000 crores in FY'24, increasing to INR10,000 crores in FY'25 due to aggressive bidding and new projects.
→Railways projects contributing to diversification; margins for railways EPC projects are targeted similar to highways (~13%).
→Digital transformation initiatives expected to improve operational efficiency and enhance financial performance.
→Overall, focused on boosting both EBITDA and PAT margins through enhanced execution and operational efficiency.

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Fundraise plans

→No explicit mention of new fundraising through debt or equity in the near term.
→Current gross standalone debt is INR470 crores (including working capital and NCD).
→For HAM projects, total equity requirement until FY '26 is INR1,331 crores; INR604 crores already infused and INR74 crores projected to be infused in FY '24.
→Company prefers to manage funds through internal arrangements, e.g., receiving payments via SPVs to reduce SPV debt and minimize interest cost.
→Focus on optimizing cash usage through advanced procurement and avoiding overdraft utilization.
→Capex guidance is moderate (around INR75 crores for upcoming years), indicating controlled capital needs.
→No indication of aggressive new debt or equity issuances planned immediately.

Order book

→As of December 2023, H.G. Infra's order book stood at INR 9,626 crores across 11 states.
→Order book composition: 51% EPC, 37% HAM, and 12% railway/metro projects.
→16 bids worth around INR 14,000 crores are pending results.
→Total upcoming bidding opportunities: INR 60,000-70,000 crores in MSRDC, INR 50,000+ crores at NHAI, and INR 40,000 crores in Ministry projects.
→Around INR 25,000 crores of railway projects expected to be awarded soon.
→The company has bid for 52 tenders worth INR 30,572 crores till January 2024.
→Expecting order additions of around INR 6,000 crores in the current financial year.
→Anticipates adding another INR 5,000 crores in remaining months of FY24, total INR 6,000 crores for the year.
→For FY25, order addition target is about INR 10,000 crores.
→Railway projects in pipeline for bidding worth approximately INR 6,000 crores.

Capex plans

Yes

→FY'24 capex already done, exceeding INR100 crores; no significant addition planned this year.
→For FY'25, targeted capex is minimal, around INR75 crores.
→INR196 crores balance equity planned from FY'25 to FY'27, partly linked to Japan projects.
→Additional equity investment of approximately INR74 crores expected in Q4 FY'24.
→Total equity investment target around INR1,331 crores with INR601 crores completed by Dec 31, balance INR730 crores pending.
→Strategic move into solar projects in Rajasthan with small-scale projects under Kusum Yojana, aiming for contract execution with government power purchase agreements.
→Exploring diversification into railway and metro tunnel projects but not aggressively pursuing large projects yet.
→Digital transformation and automation initiatives are ongoing to enhance operational efficiency and financial performance.

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