HG Infra reports cancellation of order

News: HG Infra Engineering has informed the stock exchanges that certain road projects awarded on HAM mode by Public Works Department (PWD), Rajasthan in September, 2021, got annulled recently as the company's bid project cost of Rs.448.11 crore was not accepted (against authority's estimated amount of Rs.331.11 crore).

Views: We expect only a marginal impact on visibility as HG Infra’s order book as on September 30, 2021 was at Rs.6,843 crore (2x book to bill). Additionally, it had secured two consecutive packages of a road project worth Rs.2,223 crore (EPC value) on a HAM basis post Q2FY22, which has strengthened its order book further. Going forward, the company is aiming to bag projects worth ~Rs.6,000 crore during FY22- to be driven by strong order pipeline in roads, railways, and water supply segment.

Impact: Negative