Highway Infrastructure Ltd (MAINBOARD)

IPO Details

Company Financial In Crore

About Company

Business Segments:

1. Tollway Collection Operations:

• Manages toll systems awarded through competitive bidding.
• Among the early adopters of ANPR (Automatic Number Plate Recognition) on the Delhi–Meerut Expressway.
• Active toll operations span 11 states and 1 Union Territory.
• Uses ETC (Electronic Toll Collection) with RFID tags and digital platforms for seamless payments.
• Completed Projects: 24
• Ongoing Projects: 7 (as of August 31, 2024)

2. EPC Infrastructure Projects:

• Handles end-to-end infrastructure development using internal resources.
• Project experience includes roads, bridges, civil structures, irrigation tanks, etc.
• Completed Projects: 63
• Under Execution: 20 (as of August 31, 2024)
• Key ongoing projects are located in Indore, Ratlam, and Khandwa (Madhya Pradesh).

3. Real Estate Development:

• Engaged in development and sale of residential and commercial properties.
• Focuses on gated communities and housing developments.
• Represents the smallest business vertical in terms of revenue and scale.

Human Resources:

As of August 31, 2024, HIL has a workforce of 398 employees spread across all its operating segments.

Strength

Strong Execution with Pan-India Experience: With nearly 30 years of experience, the company has successfully executed tollway and EPC projects across multiple Indian states, including managing ANPR-based tolling on major expressways like the Delhi-Meerut Expressway. Use of ETC systems enhances toll efficiency and reduces congestion.

Experienced Leadership Team: The company is led by a skilled management team with deep technical, financial, and operational expertise. Key leaders like the Managing Director, CFO, and CEO bring valuable experience in planning, execution, and government coordination.

Robust Order Book and Financial Growth: As of August 31, 2024, the company holds a strong order book of ₹5,963.83 million, with consistent revenue and profit growth. Revenue grew at a 27.09% CAGR and profit at a 58.55% CAGR from FY22 to FY24, showcasing strong financial health and market adaptability.

Weakness

Dependence on Key Government Clients: A major portion of revenue comes from tollway collections awarded by NHAI and EPC contracts from public sector clients. Loss of any significant client, especially NHAI, could negatively impact the company’s business and financials.

Seasonal Impact on Revenue :Toll collections decline during monsoon due to reduced traffic flow and weather disruptions. Heavy rains or cyclones can delay projects and damage infrastructure, leading to inconsistent revenue trends across the year.

Competitive Tender-Based Business: Projects are awarded through highly competitive bidding, requiring strict technical and financial qualifications. Failure to win bids or recover non-refundable bid costs may adversely affect the company’s growth and profitability.