GR Infraprojects Q3 Results Review

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GR Infraprojects Ltd. reported a positive set of numbers in Q3 FY23. The company reported revenue of Rs 1,899 crore ( up 4% YoY). It posted Ebitda of Rs 277 crore (up 9% YoY), and adjusted profit after tax of Rs 174 crore (up 35% YoY).

GR Infra registered Ebitda margins of 14.6% in Q3 FY23 (our estimate: 15.2%) as against 14% in Q3 FY22. Adjusted profit after tax was higher owing to lower depreciation and interest costs.

The company’s order book remains robust at Rs 14,000 cr, giving revenue visibility for the next 1.5-two years. With a healthy National Highway Authority of India pipeline, we expect the company to receive better order intake which shall drive its revenue growth moving forward. We expect the company to grow its revenue at 8% compound annual growth rate over FY22-FY24E.

GR Infra is looking to diversify to other segments such as railways, ropeways, and metros to keep the revenue stream unaffected apart from the road segment. With newer opportunities emerging in various infra-related sectors, further diversification strategy augurs well for the company.

A slower order win is a concern. However, the company maintains its guideline of Rs 15,000 crore order intake in FY23.

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