HG Infra Engineering - Q4FY21 first cut: Stellar performance - YES Securities

- HG Infra reported topline growth of 65% yoy and 40% qoq (to Rs.10.3bn) on standalone basis, ahead of our estimates (Rs.7.9 bn).

- Operating margin stood healthy at 16.2% during Q4 FY21 (16.3% in Q4 FY20).

- Adjusted PAT almost doubled YoY to Rs. 977 mn.

- During the quarter, the company won projects totaling ~Rs25 bn and Order book now stands at ~Rs.70 bn (3x FY21 Revenues).

- Further the company has announced that collection from customers have been normal during the lockdown period enabling the company to meet all its liabilities (including employee payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India. The company also announced that it don't foresee any material impact on revenue and operating cash flow due to the pandemic.

- The Company has declared a final dividend of Rs. 0.8/share

- We currently have a BUY rating on the stock and would review our estimates post Earnings Call.

Shares of H.G. Infra Engineering Ltd was last trading in BSE at Rs.333.15 as compared to the previous close of Rs. 292.25. The total number of shares traded during the day was 130521 in over 4567 trades.

The stock hit an intraday high of Rs. 346.4 and intraday low of 309.25. The net turnover during the day was Rs. 43466789.

Source : Equity Bulls

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