H.G. Infra Engineering Limited: history, ownership, mission, how it works & makes money

A Brief History of H.G. Infra Engineering Limited

Founded in 2003, H.G. Infra Engineering Limited has established itself as a prominent player in the Indian infrastructure sector, focusing primarily on the construction of roads, highways, and other civil engineering projects. The company is headquartered in Gurugram, India, and has developed a robust portfolio of projects across various states in the country.

In the fiscal year ending March 2021, H.G. Infra reported a revenue of ₹1,217.46 crores, showcasing a significant growth trajectory. This was a notable increase from the ₹1,022.71 crores recorded in the previous year. The company’s net profit for the same period stood at ₹109.81 crores, compared to ₹87.30 crores in FY 2020, reflecting a growth of approximately 25.5%.

H.G. Infra made its debut on the stock market in 2018, with an initial public offering (IPO) that raised around ₹ 500 crores. The IPO was subscribed over 90 times, indicating strong market interest. Since its listing, the stock has shown robust performance, which can be attributed to strategic project acquisitions and efficient execution capabilities.

The company has consistently expanded its footprint, winning significant contracts in both the public and private sectors. As of October 2023, H.G. Infra holds a diverse order book of approximately ₹9,300 crores, providing visibility into future revenue streams. Their operational excellence is evident in the on-time completion of projects, which is a crucial factor for client satisfaction and repeat business.

In 2021, H.G. Infra secured a major contract from the National Highways Authority of India (NHAI) worth about ₹1,200 crores for the construction of a highway project. This contract solidified the company's position in the market and underscored its capabilities in handling large-scale infrastructure projects.

The following table illustrates key financial metrics for H.G. Infra Engineering Limited over the last three financial years:

Over the years, H.G. Infra has built a reputation for its commitment to innovation and quality. The company continually invests in modern equipment and technologies to enhance its project delivery capabilities. As a result, it has successfully completed over 200 projects across various sectors, further establishing its presence in the construction industry.

With a focus on sustainable practices, H.G. Infra is also dedicated to minimizing its environmental impact. The company has implemented several initiatives aimed at reducing carbon emissions and promoting the use of eco-friendly materials in its projects.

In conclusion, H.G. Infra Engineering Limited exemplifies strong growth and operational excellence within the Indian infrastructure sector. Its strategic focus on major public works projects and a solid financial foundation position it well for future expansion and success.

A Who Owns H.G. Infra Engineering Limited

H.G. Infra Engineering Limited is a publicly traded company listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). As of the latest available data from September 2023, the ownership structure of the company is as follows:

The promoter group, which includes founders and their families, holds a significant stake in the company. This indicates a strong commitment from the original founders towards the long-term vision and operational control of H.G. Infra Engineering Limited.

As of the fiscal year ending March 2023, H.G. Infra Engineering reported a total revenue of ₹1,464 crores, a year-on-year increase of approximately 15.2%. The net profit for the same period stood at ₹143 crores, translating to a net profit margin of 9.76%.

In addition to equity ownership, the company’s debt levels and their impact on ownership can be observed. As of March 2023, H.G. Infra Engineering had a total debt of ₹692 crores, resulting in a debt-to-equity ratio of 0.73. This level of leverage indicates a balanced approach to financing its operations while maintaining adequate equity control.

Institutional ownership, particularly from foreign and domestic investors, reflects the confidence in the company's growth potential, evidenced by the strong uptick in stock price over the last fiscal year. The closing share price on September 29, 2023, was ₹310.40, marking a substantial gain of approximately 40% year-to-date.

The investor composition is indicative of growing interest from larger institutional entities, which can enhance stock liquidity and stability. The engagement of both domestic and foreign institutional investors suggests that H.G. Infra Engineering is seen as a viable player in the infrastructure segment in India.

H.G. Infra Engineering Limited Mission Statement

H.G. Infra Engineering Limited aims to achieve excellence in infrastructure development through innovative practices, customer focus, and sustainability. The company's mission statement reflects its commitment to enhancing infrastructure that contributes to national progress while ensuring minimal environmental impact.

The organization seeks to provide top-notch engineering services across various sectors, including roads, highways, and water resources. H.G. Infra’s mission emphasizes collaboration with stakeholders and investment in cutting-edge technologies to drive efficiency and safety in its operations.

As of the latest fiscal year ending March 2023, H.G. Infra Engineering reported significant financial achievements that align with its mission. The key financials include:

In line with its mission, H.G. Infra has successfully secured numerous contracts for various public and private sector projects, reflecting its operational efficacy and reputation in the industry. For instance, the company was awarded a significant project in 2023 for the construction of a major highway segment valued at ₹1,000 crores.

Furthermore, H.G. Infra’s approach to sustainability is evident in its practices, as they aim to incorporate eco-friendly materials and construction techniques. This commitment was highlighted in their recent sustainability report, which stated that over **30%** of their projects now focus on reducing environmental impact.

Their investment in technological advancements has led to improved project management and execution timelines. In 2022, they implemented a new project management software that cut down project delays by **15%** on average.

H.G. Infra Engineering Limited continues to align its operations with its core mission, demonstrating financial growth alongside a commitment to sustainable infrastructure development.

How H.G. Infra Engineering Limited Works

H.G. Infra Engineering Limited is a prominent player in the Indian infrastructure sector, primarily engaged in the construction of roads, highways, and bridges. Founded in 2003, the company's operations span various segments including civil engineering, infrastructure development, and project management.

The company generates revenue through contracts awarded by the government and private entities. In the fiscal year 2022-2023, H.G. Infra reported a revenue of approximately ₹2,550 crore, a clear indication of its robust growth trajectory. The net profit for the same period stood at around ₹315 crore, representing a year-on-year growth of 24%.

H.G. Infra employs a well-structured bidding process for securing contracts, focusing on project feasibility and competitive pricing. The company’s project portfolio is diversified, encompassing highways, urban infrastructure, and airport projects. As of October 2023, H.G. Infra holds over ₹9,000 crore worth of outstanding orders, ensuring sustained revenue inflow for the coming years.

Operational efficiency is enhanced through the use of modern construction techniques and technologies. H.G. Infra has invested significantly in machinery and equipment, with a fleet that includes advanced road construction machinery, paving machines, and heavy-duty vehicles. This not only increases productivity but also ensures timely project delivery.

The company is also engaged in sustainability initiatives, emphasizing eco-friendly construction practices. H.G. Infra aims to reduce its carbon footprint through responsible sourcing of materials and waste management practices.

Further, H.G. Infra has expanded its geographical reach, currently undertaking projects in multiple states across India. The company’s strategic partnerships with governmental bodies bolster its capability to execute large-scale projects.

Moreover, H.G. Infra is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), providing investors with an opportunity to participate in its growth story. As of October 2023, H.G. Infra's stock price is approximately ₹590, reflecting a year-to-date increase of about 30%.

Looking ahead, H.G. Infra’s focus remains on securing new contracts in line with government initiatives such as the National Infrastructure Pipeline (NIP), which aims to invest approximately ₹111 lakh crore in infrastructure over the next few years. This positions H.G. Infra to capture growth opportunities, enhancing its role in India's infrastructure development.

How H.G. Infra Engineering Limited Makes Money

H.G. Infra Engineering Limited, a leading player in the infrastructure sector, primarily generates revenue through various segments, including construction, engineering, and project execution. The company has built a strong portfolio in sectors like roads, railways, and urban infrastructure, which are pivotal to its financial success.

In the financial year 2023, H.G. Infra reported a revenue of ₹1,495.97 crore, an increase from ₹1,201.04 crore in FY2022, reflecting a growth of approximately 24.5% year-over-year. The growth was driven by increased project awards and execution efficiency.

Revenue Breakdown by Segment

The company has a diversified portfolio which mitigates risks associated with dependency on a single segment. In FY2023, the Roads and Highways segment contributed 53.4% to total revenue, while Urban Infrastructure accounted for 20.0% and Railways 13.4%.

Profitability Metrics

H.G. Infra Engineering has demonstrated strong profitability with a consolidated EBITDA of ₹229.63 crore in FY2023, compared to ₹185.40 crore in FY2022, indicating an EBITDA margin of 15.4%, up from 15.4% the previous year.

Order Book and Future Revenue Potential

The company’s order book as of Q2 FY2023 stood at ₹7,500 crore, which provides strong visibility for revenue over the next few years. H.G. Infra aims to achieve an order inflow of approximately ₹3,000 crore in FY2024, with a focus on smart city projects and highway expansions.

H.G. Infra has also been proactive in securing new contracts. In Q1 FY2023, the company received a letter of acceptance for a project worth ₹1,500 crore from the Ministry of Road Transport and Highways, further enhancing its growth prospects.

Geographic Revenue Distribution

The geographic distribution of revenue indicates a well-balanced presence across regions, reducing vulnerability to local economic fluctuations. The Western India segment, comprising 33.4% of total revenue, shows significant opportunities in urban infrastructure development.

Financial Health Indicators

H.G. Infra Engineering has maintained a healthy financial position with a current ratio of 2.1 as of Q2 FY2023, indicating adequate liquidity to cover short-term obligations. The debt-to-equity ratio stands at 0.64, reflecting prudent financial management.

In summary, H.G. Infra Engineering Limited leverages its expertise in infrastructure development through diversified revenue streams, a strong order book, and robust financial health, positioning itself for continued growth in the coming years.