Order book from Investor Presentation at https://www.hginfra.com/pdf/investor_presentation_q4_n_fy23.pdf
Concall notes summary from Screener.in
Concall Notes – May 2023
Financial Performance:
Standalone overall revenue increased by 22.2% YoY in FY23
EBITDA grew by 21.5% YoY in FY23
Profit before tax for Q2 FY23 grew by 64.8% YoY
Five-year CAGR for revenue, EBITDA, and PAT were 26%, 28%, and 38% respectively
ROCE and ROE increased to 30% and 24% respectively
Order Book:
Order inflow of INR8,650 crores during the year
Anticipates securing orders worth INR8,000 to INR9,000 crores in FY24
Aims to have 20% to 25% of the order book comprising non-road projects within
the next two to three years
Bid for INR8,000-9,000 crores in railways and metro projects and INR1,600 crores
in water projects for FY23
Business development unit created to explore opportunities in railways
and water projects for FY24
HAM Projects:
Monetized four HAM projects for INR1,394 crores with an equity value of INR531 crores
Total requirement of all HAM projects in equity was INR16,120 crores
INR735 crores were invested till March, with a balance requirement of INR440 crores
for FY24, INR359 crores for FY25, and INR76-odd crores for FY26
The company expects inflows from the monetization of projects to be received one
by one with different amounts
The company has secured INR500 crores worth of execution from recently
won HAM projects
New Projects:
Secured three HAM projects and three non-road projects
Central government intends to accelerate the construction of roads in FY24
with the awarding of new projects of 12,000 to 12,500 odd kilometers this year
The company is looking to grow their order book in the financial year, majorly
from roads and highways segment, but they would like to further extend their
presence in other sectors too, including water, railways, and other opportunities
Bid for five water projects in FY23 but couldn’t invest in any of them due to
L4 to L5 range estimation
The company is exploring Ropeways and tunnel projects in addition to
highways, railways, and water projects
NHAI has a pipeline of 2,300km bids to be awarded from June onwards,
and NHO projects offer further opportunities
Margins:
EBITDA and gross margins have shown improvement due to a normal trend,
with OPM increasing
The EBITDA margin guidance for the next few years is tentatively around 16%
The company expects operating margins to be around 15-15.25% for
under-execution projects
Capex:
Capex for the year was INR340 crores, with equipment upgrades
being a strategic focus
The net capex addition for 2024 and 2025 is expected to be around
INR100 crores
Debt and Cash:
The company expects debt level to come down to around INR350 crores
by the end of next financial year
Mobilization advance is INR328 crores, retention and miscellaneous
deposits withheld total INR879 crores in debtors
The company has INR67 crores withheld amount, which is considered
in the debtor balance
Guidance:
The company expects inflow of INR530 crores from
he sale of four projects
this year
The company expects execution growth of close to 23% and does not see
any risk to execution from elections
The company expects to sustain 20% growth in FY25
Q1 earnings are not possible due to delayed NOCs, but arrangements will be
made for Q2 and Q3/Q4
Heavy monsoons affected projects in March and April, but Q2 is expected to have
a 23% YoY increase in earnings
The revenue guidance for FY24 is expected to be around INR5,500 to
INR5,600 crores, which is 23-24% of the total
The company had a successful year and is committed to delivering
better in the future.
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