Chairman and Managing Director H.G. Infra Engineering Limited
Dear Stakeholders,
On behalf of the Board of Directors, I am pleased to present H.G. Infra
Engineering Limited's (HGIEL) Annual Report for the financial year 2023-2024. This
year has been a period of significant progress for the Company, marked by a robust
financial performance, strategic diversification of our order book and a continued
commitment to excellence in infrastructure development.
The past couple of years have been dedicated to the strategic
transformation of our Company. We have expanded beyond our traditional roads and highway
segment to explore new opportunities in the railways, metro, and renewables sectors. We
have observed that the Indian government is allocating significantly in the infrastructure
sector, and this phase of allocation is believed to continue in the coming years. The
Indian government envisions robust infrastructure growth as a cornerstone for economic
development, focusing on creating a multi-modal transport network, modernizing urban
infrastructure and enhancing renewable energy capacities. This presents a significant
opportunity for companies like us to contribute to and benefit from this transformative
growth. Today we have been recognised as one of the fastest growing EPC companies in
India.
How are we leveraging opportunities?
India's infrastructure sector is experiencing a period of
unprecedented growth, fueled by a substantial government budgetary allocation of Rs 5.33
Lakh Crore for FY24 and FY25. This amount includes Rs 2.78 Lakh Crore allocated to the
Ministry of Road Transport and Highways, with a significant boost for the National
Highways Authority of India (NHAI) at Rs 1.68 Lakh Crore, underlining the
government's focus on developing national corridors. Additionally, Rs 2.55 Lakh Crore
has been allocated for the Indian Railways, further enhancing the comprehensive
infrastructure development strategy.
Vision 2047 further amplifies this commitment with ambitious plans to
construct 30,000 to 35,000 kilometres of highways and 50,000 kilometres of high-speed
corridors by 2047. This ambitious agenda presents abundant opportunities for companies
like HGIEL, which has a proven track record in the EPC and HAM sectors. We are actively
exploring opportunities as EPC player to participate in BOT (Build-Operate- Transfer)
projects alongside prominent players to further strengthen our presence in highway
construction.
Roads and Highway- Keeping a steady pace
India is revving up to be a developed nation by 2047. This vision is
providing a big push to the nation's infrastructural development. We, at HGIEL, are
well- positioned to capitalise on this trend and ride this tide of change. Being well
aligned with India's development strategy we are going steady on the roads and
highways segments. While we continue to deliver excellence in EPC projects, we are also
broadening our horizons by actively pursuing BOT projects in collaboration with industry
leaders. This approach not only strengthens our footprint in highway construction but also
diversifies and enriches our project portfolio.
Railways and Metro- Expanding Our Horizons
As part of our long-term diversification strategy, we have been
focusing on the railways and metro segments. I am pleased to announce that we are
witnessing significant traction in this area. The government's renewed focus on this
sector, with an allocation of Rs 2.55 Lakh Crore, prioritises multi- tracking corridors
and station redevelopment. A significant portion of this budget is dedicated to multi-
tracking seven high-density corridors which is facilitating the expansion of rail networks
by 10,959 kilometres
in the next decade. This increased momentum creates ample scope for HG
Infra, which is well-positioned with six ongoing railway projects across five states. We
possess the requisite capital expenditure (CAPEX), technology and skilled workforce to
contribute to network expansion, efficient development and modernisation of existing
infrastructure.
Embracing Renewable Energy- A Strategic Move
The renewable energy sector is witnessing exponential growth, aiming
for 450 gigawatts of installed capacity by 2030, with solar energy constituting over 60%.
Recognising this lucrative potential, HGIEL has successfully secured solar power projects
under the KUSUM scheme, totalling 543 megawatts DC with an EPC value of Rs 1,307 Crore
(excluding GST). We are actively exploring further opportunities in solar power
development, including rooftop installations. These projects would solidify HGIEL position
as a leading EPC company in the infrastructure sector.
Operational Highlights- Delivering Value
FY24 witnessed significant growth and diversification of our order
book. As of March 31,2024, it stands at a robust Rs 12,434 Crore, with Road & Highway
EPC projects contributing 28%, Road and Highway HAM projects contributing 40%, railway
projects contributing 21%, and solar projects contributing 11%. Our ongoing EPC projects
are progressing well. The Ganga Expressway project has reached a milestone of
approximately 54.3%, adhering to contractual timelines.
Our HAM projects are progressing as per plan. The Karnal Ring Road
project has achieved 23.9% completion and is well on track. Railway projects are also
witnessing steady development, with the DMRC Metro projects reaching a completion stage of
approximately 50%. Each of the segments is seeing positive movement and this is a
testament to the dedication and hard work of our entire team. Their spirit and expertise
are the pillars of HGIEL's continued success.
Looking Ahead- Building a Brighter Tomorrow
FY24 has been a year of remarkable achievements for HG Infra. We have
successfully diversified our order book, expanded our presence in new sectors, and
delivered strong operational performance. Looking ahead, we are committed to leveraging
these strengths to capitalise on the vast opportunities presented by India's booming
infrastructure sector.
Order book Diversification: We will actively seek opportunities in
promising sectors like renewable energy, water infrastructure and BOT projects through
strategic partnerships as EPC player.
Operational Excellence: We are committed to maintaining the highest
standards of project execution, ensuring timely completion and adherence to the highest
quality standards.
Technological Innovation: We recognise the importance of technology
in enhancing efficiency and productivity. We will continuously invest in innovative
solutions to optimise project delivery and remain at the forefront of the infrastructure
development landscape.
Sustainability: We are committed to integrating sustainable
practices into our operations and actively contributing to environmental and social
well-being.
I would like to express my sincere gratitude to our employees for their
dedication and hard work, which has been instrumental in achieving these milestones. I
also extend my appreciation to our esteemed stakeholders, including our clients, partners,
investors, bankers, auditors, and vendors for their continued trust and support. As we
embark on a new fiscal year, we are confident that HG Infra is well-positioned to achieve
sustainable growth and create long-term value for all our stakeholders.
Sincerely,
Harendra Singh
Chairman
H.G. Infra Engineering Limited