- 10 Aug 2022
- ICICIdirect Research
GR INFRAPROJECTS POSTS POSITIVE SURPRISE ON EXECUTION, MARGINS
News: GR Infraprojects' revenue during Q1FY23 improved 16.1% YoY to Rs 2,476.7 crore. On QoQ basis, the company has reported 9.2% growth. Its topline was largely backed by its decent order book position, pick-up in execution, and receipt of appointed date in most of its older projects. EBITDA margin stood at elevated level of 19.6% (up 345 bps YoY) aided by higher contribution from HAM projects. Effectively, EBITDA at Rs 486.4 crore, was up 40.8% YoY. At net level, the company reported 57.7% YoY growth in PAT (to Rs 321.1 crore).
View: Overall, GR Infraprojects’ reported robust performance during Q1FY23. Its decent order book position, healthy revenue visibility, lean balance sheet structure, comfortable working capital cycle and strong return ratios remain key positives. However, CBI’s raid in several locations and arrests of NHAI’s officials/GRIL’s functionaries in a case related to allegations of extending favours to company for processing and clearance of final bills, getting bank guarantees, and release of discharge certificate has raised uninvited uncertainty in the recent times. We await management commentary on future outlook, order inflows target, progress on HAM projects and update on CBI’s raid.
Impact: Positive.