- 25 Nov 2024
- ICICI Securities
HG INFRA RECEIVES LOA FOR BATTERY STORAGE PROJECT
News: HG Infra received letter of award (LOA) from NTPC Vidyut Vyapar Nigam Ltd (procurement under tariff based global competitive bidding) for setting up of 500 mw/1000mwh standalone battery energy storage systems in India with viability gap funding support. The size of the order/contract is 185 MW/370 MWh, tariff rate 238000 per MW/ per month. The project is to be completed in 1.5 years.
Views: HG infra’s performance during the quarter was strong led by robust execution. Its order book stood at ₹16624 crore, 3x book to bill (₹1911 crore from solar projects). The company reported superior topline performance (surpassed guidance of 18-20% growth) the new order further adds to the revenue visibility, given healthy bid pipeline of ₹1200 crore for Solar projects along with superior margins in solar segment (~18%) to aid overall margins. The strong ordering momentum ensures the company’s execution outlook of ₹11000-12000 crore of order inflows will be met.
Impact: Positive