HG Infra Engineering reports decent performance; healthy outlook

News: HG Infra's standalone revenue improved 24.7% YoY to Rs.915.6 crore. EBITDA margin remained at an elevated level of 15.9% (down 22 bps YoY). Effectively, EBITDA at Rs.145.2 crore, was up 22.9% YoY. PAT was up 35.6% YoY (to Rs.88.9 crore).

Views: The overall performance during Q3FY22 stood healthy largely backed by a) its comfortable order book position, b) pick up in execution, and c) receipt in appointed date for most of its project. Going forward, we are positive on the stock with a) its comfortable order book position, b) better revenue visibility, c) healthy operating margin of ~16%, d) comfortable balance sheet position, and e) controlled working capital cycle.

Impact: Positive