ADVERTISEMENT

Dolat Capital: HG Infra Engineering Posts Muted Quarter, Better Show From Q3 FY21E

Dolat Capital: HG Infra Engineering Posts Muted Quarter, Better Show From Q3 FY21E

Ongoing Bhandara Project by HG Infra Engineering Ltd. (Image: Company website)
Ongoing Bhandara Project by HG Infra Engineering Ltd. (Image: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

HG Infra Engineering Ltd. reported revenue and profit after tax below estimates however, Ebitda margins were above estimates.

The company posted muted numbers with 43.4%/ 38.2%/ 56.1% YoY degrowth in revenue/ Ebitda/ profit after tax to Rs 3.0 billion/ Rs 491 million/ Rs 151 million in Q1 FY21.

We broadly maintain our estimates for FY21E/ FY22E despite muted Q1 FY21 as we expect execution to pick up significantly from Q3 FY21E in projects worth Rs 33.4 billion on receiving the appointed date coupled with stabilisation of labour and supply chain issues.

We expect 7.5%/ 23.0% revenue growth for FY21E/ FY22E. The company’s labour availability has improved from 50-70% to 80-85% strength and expects 100% labour post monsoon.

Click on the attachment to read the full report:

Dolat Capital HG Infra Engineering Q1FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.