Hec Infra Projects Limited

Mr. Guarang Shah (Managing Director) is a mechanical engineer with more than three decades of experience in executing various projects of Electrical, Mechanical, Solar, Water Distribution etc. for various companies and corporations. Mrs. Rupal Shah is executive director in the company and looks after accounting, finance and administration. Mr. Rahul Shah (Son of Mr. Gaurang Shah) looks after the operations of the company as a project manager. HEC also has team of engineers, project managers and

HEC has an established track record of more than three decades as an EPC contractor in the field of Electrical, Electro-Mechanical, Civil and Instrumentation work. HEC offers integrated solutions and end-to-end services ranging from design, supply, installation and commissioning of overhead transmission lines, substations, underground cable lying, Switchyard, Water pumping stations, Lighting systems, Industrial and commercial electrification, solar PV plants, battery energy storage system and mi

HEC has a long track record in executing Electro-Mechanical projects for reputed clientele across various industries such as Engineering and allied products, power transmission, Textiles, Steel & Non-ferrous metals, Petrochemicals etc. In the past HEC has executed various projects for GETCO, Gujarat Gas Ltd., HPCL, J Kumar Infra Projects ltd and Airport Authority of India amongst others. In terms of awarding authority body, proportion of contract from the nodal agencies of government was 73% of

HEC’s capital structure remained moderate marked by overall gearing of 1.25x as on March 31, 2022 which was largely in line with March 31, 2021 (1.12x). Total debt increased mainly on account of increase in unsecured loan by promoter to meet its incremental working capital requirements. Liquidity: Stretched HEC has stretched liquidity position marked by high utilization of working capital limits, elongated operating cycle and modest

HEC has stretched liquidity position marked by high utilization of working capital limits, elongated operating cycle and modest cash accruals which are tightly matched against its repayment obligations. HEC has term debt repayment obligations of around Rs.1.67 crore for FY23. During FY22, company has reported negative cashflow from operations of Rs.3.33 crore (PY –inflow of Rs.1.48 crore). Average fund-based and non-fund based working capital utilization for past twelve months ended May, 2022

Total operating income 37.57 43.86 32.53 PBILDT 2.31 2.77 2.94 PAT 0.31 0.51 0.32 Overall gearing (times) 1.12 1.25 NA Interest coverage (times) 0.89 1.07 1.27 A: Audited UA: Unaudited; Note: ‘the above results are latest financial results available’ Status of non-cooperation with previous CRA: Not Applicable

HEC reported modest TOI of Rs.43.86 crore in FY22. During 9MFY23, HEC’s scale of operations improved by 25% on y-o-y basis, however, continue to remain modest at Rs.32.53 crore. PBILDT margin improved during 9MFY23 to 9.04% (9MFY22: 7.65%). Consequently, PAT also increased from Rs.0.18 crore in 9MFY22 to Rs.0.32 crore in 9MFY23. HEC’s debt coverage indicators continue to remain weak in 9MFY23 marked by modest interest coverage of 1.27x (FY22: 1.07x)

HEC’s operations remained modest in FY22 while its working capital requirements remained high leading to an elongated working capital cycle of 216 days in FY22 (FY21: 210 days). HEC has significant capital deployed in working capital in form of security deposits/Earnest money deposits apart of receivables and inventory aggregating which has not shown any major improvement in FY22 viz. Rs.65 crore (approx.) as on March 31, 2022 as compared to Rs.67 crore (approx.) as on March 31, 2021. As on Marc

HEC has outstanding order book of Rs.114.90 crore as on June 30, 2022 out of which orders amounting to Rs.20 crore show no progress due to non - availability of site and in around Rs. 10 crore of orders final billing is pending from August 31, 2021. Order 1Complete definition of the ratings assigned are available at www.careedge.in and other CARE Ratings Ltd.’s publications 1 CARE Ratings Ltd. Press Release book to sales ratio of 2.63 times providing medium to long term revenue stability. The ma

High level of safety, security and regulatory requirements are the key for entire EPC business and requires specialized skills to be developed along with a demonstrated track record. Contracts are awarded on tender basis which requires company to meet the bidding criteria qualification which also acts as a very strong entry barrier. However, due to the presence of few large players and large number of small players, there is stiff competition at the time of bidding of contracts.

Being an EPC contractor, HEC’s fortune is linked with the overall economic development and spending on the infrastructure segment by both public as well as private sector. Further, the industry is fragmented and is characterized by many small players leading to high level of competition within the industry. Key strengths Experienced and technically qualified promoters and continuous support in form of unsecured loans

Experienced and technically qualified promoters and continuous support in form of unsecured loans Mr. Guarang Shah (Managing Director) is a mechanical engineer with more than three decades of experience in executing various projects of Electrical, Mechanical, Solar, Water Distribution etc. for various companies and corporations. Mrs. Rupal Shah is executive director in the company and looks after accounting, finance and administration. Mr. Rahul Shah (Son of Mr. Gaurang