Shares of HG Infra Engineering Ltd. are in focus on Thursday, November 5, reacting to their second quarter results that were reported after market hours on Wednesday.
HG Infra’s results were weak across the board, reporting a year-on-year decline across key parameters.
For the September quarter, HG Infra delivered a profit after tax (PAT) of ₹32.1 crore, which was down 52.1% from the ₹67 crore figure reported during the same quarter last year.
Revenue for the quarter dropped 23.5% to ₹883.2 crore in comparison to the previous year’s ₹1,154 crore. The dip in revenue came from a slower pick-up in new projects as older projects neared competition.
HG Infra Engineering’s earnings before interest, taxes, depreciation and amortization (EBITDA) declined as well by 28.6% to ₹105 crore in the September quarter from ₹147 crore in the prior fiscal.
The company’s EBITDA margin contracted by 100 basis points to 12% from 13% in the year-ago period.
At the end of the September quarter, HG Infra’s order book stood at ₹13,685 crore.
Shares of HG Infra Engineering were trading 3.6% up at ₹395.25 apiece at 9.23 am. The stock has declined 2.4% in the past month, 35.6% in the last six months and 46.7% this year, so far.
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HG Infra shares gain even as slow orders drag revenue growth, resulting in weak Q2