HG Infra receives order

News: HG Infra Engineering has been declared as L-1 bidder by NHAI for the project "6-laning with access control from km 29.435 to km 74.168 of Neelamangala - Tumkur in Karnataka on EPC mode". The company's bid project cost was at Rs.844.11 crore ( vs. NHAI's estimated cost of | 1,112.1 crore). The completion period for the project is three years.

Views: HG Infra’s order book as on September 30, 2021 was healthy at ~Rs.9,000 crore (including two L1 road project worth | 2,223 crore). The recent order win is likely to strengthen the company's overall order book position even further. However, we note that securing the project at discount to NHAI's cost indicates towards heightened competitive intensity in the industry and is likely to impact margins to some extent

Impact: Neutral