HG Infra sees healthy execution; higher input costs impact margin
News: HG Infra's revenue on standalone basis has improved 16.6% YoY to Rs 1,065.7 crore during Q1 FY23 backed by its comfortable order book position, pick-up in execution, and receipt of appointed date in most of its projects. EBITDA margin moderated to 15.2% (down 122 bps YoY) possibly impacted by higher input costs. Effectively, EBITDA at Rs 162.5 crore, was up 8% YoY. At net level, the company reported 9.8% YoY growth in PAT (to Rs 97.6 crore).
Views: Going forward, we are positive on the stock with a) its comfortable order book position, b) better revenue visibility, c) healthy operating margin, d) comfortable balance sheet position, e) controlled working capital cycle and f) healthy return ratios.
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