HG Infra Engineering Ltd, a prominent infrastructure company, has secured a significant contract from NTPC Vidyut Vyapar Nigam Ltd under a tariff-based global competitive bidding process. The project focuses on the procurement and installation of 500 MW/1000 MWh standalone battery energy storage systems (BESS) across India. Supported by viability gap funding, this initiative marks a milestone in advancing India’s renewable energy storage capabilities.
HG Infra’s share of the contract involves developing 185 MW/370 MWh of the total capacity at a tariff rate of ₹2,38,000 per MW per month. The project is valued at approximately ₹1,110 crore, with a stringent completion timeline of 1.5 years.
These standalone battery energy storage systems are essential for stabilizing the grid and integrating renewable energy sources. By addressing challenges such as energy intermittency, the project will enhance the reliability and efficiency of India’s power infrastructure. This contract further underscores HG Infra’s growing footprint in the renewable energy sector.
Despite this significant project win, HG Infra has faced financial challenges in the second quarter ending September 30, 2024. The company reported a 16% decline in net profit year-on-year (YoY), amounting to ₹80.7 crore, compared to ₹96.1 crore in the corresponding quarter of the previous fiscal year.
Revenue from operations also dipped 5.5% YoY, falling to ₹902.4 crore from ₹954.5 crore. However, HG Infra demonstrated resilience at the operational level, with earnings before interest, tax, depreciation, and amortization (EBITDA) remaining stable. The EBITDA for the quarter stood at ₹219.5 crore, compared to ₹220.1 crore in the previous year, reflecting a marginal dip of 0.3%.
Notably, the EBITDA margin improved to 24.3%, up from 23% in the prior year’s corresponding period, indicating better cost management despite lower revenues. This operational efficiency highlights HG Infra’s ability to maintain stability during challenging financial periods.
In addition to its success in the energy sector, HG Infra has also achieved notable milestones in road infrastructure. In August 2024, the company emerged as the lowest bidder (L1) for a significant road upgrade project in Gujarat.
The project involves upgrading an existing six-lane road, including constructing an elevated corridor, along National Highway 47 from Narol junction to Sarkhej junction. The estimated project cost, as determined by the Ministry of Road Transport and Highways (MoRTH), stands at ₹883.24 crore. However, HG Infra secured the project with a competitive bid of ₹781.11 crore.
This road infrastructure initiative will be executed under the hybrid annuity mode (HAM), covering a total length of 10.63 km. The construction timeline for this project is set at 2.5 years, showcasing HG Infra’s capability to deliver high-quality infrastructure within tight deadlines.
HG Infra’s success across diverse infrastructure projects highlights its strategic focus on expanding its portfolio. The NTPC Vidyut Vyapar Nigam contract reflects the company’s growing presence in the renewable energy sector, which is vital for India’s sustainable development goals.
Simultaneously, its involvement in large-scale road projects like the Gujarat upgrade demonstrates its continued leadership in transportation infrastructure. These projects not only strengthen HG Infra’s market position but also contribute to national development by enhancing connectivity and supporting renewable energy initiatives.
The battery energy storage systems project is a critical step in advancing India’s energy transition. As renewable energy generation increases, robust storage systems like BESS are essential for addressing intermittency issues and ensuring grid stability. HG Infra’s participation in this groundbreaking initiative positions it as a key player in shaping India’s sustainable energy future.
Additionally, the Gujarat road project underscores the company’s commitment to enhancing urban connectivity and driving economic growth. By delivering infrastructure solutions that are both cost-efficient and high-quality, HG Infra continues to contribute significantly to India’s progress.
HG Infra Engineering’s ability to secure large-scale contracts in energy and road infrastructure showcases its versatility and strategic adaptability. Despite recent financial challenges, the company’s operational efficiency and project execution capabilities remain strong.
With its focus on sustainability and innovation, HG Infra is well-positioned to capitalize on emerging opportunities in India’s infrastructure landscape. The NTPC Vidyut Vyapar Nigam project, along with other initiatives, reinforces the company’s commitment to delivering solutions that align with India’s development goals.
HG Infra’s recent project wins underscore its pivotal role in transforming India’s infrastructure and energy sectors. By taking on ambitious projects like the NTPC battery energy storage systems and the Gujarat road upgrade, the company continues to demonstrate its ability to deliver excellence across diverse domains.
As India accelerates its journey toward sustainable development, HG Infra’s expertise and strategic investments will play a vital role in shaping the nation’s future. Through these initiatives, the company not only strengthens its own growth trajectory but also contributes significantly to India’s economic and environmental progress.
