GR Infra Q2 Results Review

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G R Infraprojects Ltd.’s revenue grew 4.6% YoY (down 28% QoQ) to ~Rs 17.8 billion in Q2 FY23 and was 7% below our estimate. Ebitda margin stood at 14.6% (down 170 basis points YoY).

Ebitda declined 6% YoY to Rs 2.6 billion (13% below estimate). The quarter includes bonus/claims of Rs 63.6 million (versus Rs 1.3 billion in Q1 FY23 and Rs 125.2 million in Q1 FY22).

Higher other income and low depreciation saw adjusted profit after tax declining 2.5% YoY to Rs 1.6 billion, in line with estimate. Net working capital stood at 85 at end-Q2 FY23 (versus 77 at end-Q1).

Order book in Q2 FY23 stood at Rs 156 billion (excluding level-one). The order pipeline was strong (~Rs 550 billion in road projects), with G R Infra expecting Rs 150 billion of new project wins in FY23.

The majority of new orders are expected from the roads segment with the balance coming from power transmission and distribution and metro.

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