On November 25, HG Infra Engineering’s stock surged 6.5 percent to reach an intraday high of Rs 1,363 following the company’s announcement that it had received a Letter of Award (LoA) from NTPC Vidyut Vyapar Nigam Ltd.
Under the terms of the contract, which is estimated to be worth Rs 1,110 crore, 500 MW and 1000 MWh standalone battery energy storage systems (BESS) will be purchased and installed throughout India with viability gap funding. 185 MW/370 MWh of the entire capacity will be managed by HG Infra at a monthly tariff cost of Rs 2,38,000 per MW.
H.G. Infra Engineering Ltd. awarded by NTPC
The business declared that NTPC Vidyut Vyapar Nigam Ltd. had sent it a letter of award. H.G. Infra Engineering verified in a statement issued Friday after market hours that the award is related to a project from NTPC Vidyut Vyapar Nigam Limited. Through viability gap financing support, 500 MW/1000 MWh standalone battery energy storage systems will be established in India as part of this project. With a tariff rate of Rs. 238,000 per MW per month, the project in question has a total value of 185 MW/370 MWh. It is anticipated that H.G. Infra Engineering will finish the project in one and a half years.
HG Infra Financial Performance
The net profit for the company decreased by 16% year over year (YoY) to ₹80.7 crore from ₹96.1 crore in the same quarter of the previous fiscal year. Operations revenue down 5.5% year over year to ₹902.4 crore from ₹954.5 crore. HG Infra, on the other hand, showed operational resilience by maintaining steady earnings before interest, tax, depreciation, and amortization (EBITDA). A slight decrease of 0.3% was seen in the EBITDA for the quarter, which was ₹219.5 crore as opposed to ₹220.1 crore the year before.
Notably, despite reduced revenues, the EBITDA margin increased to 24.3% from 23% in the same period last year, demonstrating superior cost control. This operational effectiveness demonstrates HG Infra’s capacity to remain stable throughout trying economic times.
