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HG Infra Engineering Q2 Review - Execution Momentum To Continue: Dolat Capital

HG Infra Engineering Q2 Review: Execution Momentum To Continue, Says Dolat Capital

<div class="paragraphs"><p>Cranes stand in front of trade Center. (Photographer: Michael Nagle/Bloomberg)</p></div>
Cranes stand in front of trade Center. (Photographer: Michael Nagle/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. 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 Ebitda in line however, adjusted profit after tax above estimates.

HG Infra reported 60.4%/ 58.3%/ 113.8% YoY growth in revenue/ Ebitda/ profit after tax to Rs 7.5 billion/ Rs 1.2 billion/ Rs 698 million in Q2 FY22.

We increase our revenue and Ebitda estimates by 4.3%/ 7.5% and 4.9%/ 6.6% for FY22E/ FY23E factoring pick up in execution in H2 FY22.

Accordingly, we increase our profit after tax estimated by 13.2%/ 9.9% for FY22E/ FY23E. We introduce FY24E.

HG Infra has received appointed date for all its projects (except Rs 44.4 billion six hybrid annuity model projects) and entire execution benefit will be realised in FY23E.

We expect 35.4%/ 18.8%/ 19.4% revenue growth for FY22E/ FY23E/ FY24E.

Click on the attachment to read the full report:

Dolat Capital - H.G. Infra Engineering Q2FY22 Result Update.pdf

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