Engineers India hosted a conference call on Nov 10, 2023. In the conference call the company was represented by Sanjay Jindal - Director (Finance).

Key takeaways of the call

Order book as end of Sep 2023 stood at Rs 8188 crore of which 59% (or Rs 4853.1 crore) is consultancy orders and 41% (or Rs 3335.2 crore) is turnkey orders.  Order intake in Q2FY24 was Rs 1144.2 crore [turnkey is Rs 835.5 crore, consultancy is Rs 308.7 crore)  and for H1FY24 was Rs 2409.4 crore.

Confident of equaling or surpassing last year order intake of Rs 4708 crore in current fiscal.

Margin of 12% in q2fy24 is largely due to impact of change orders amounting Rs 45 crore. Turnkey business is always a 3% margin business and the margin will vary quarter to quarter depending on project mix and revenue recognition stage of order.    Efforts are on to substantially increase in the margin of turnkey business. 

Consulting the company will be maintaining the margin at about 27-28%.

On full year basis the margin of both consultancy and turnkey will be maintained.

Expect 10% increase in STO and net profit for fy24.

Order pipeline – few of Oil & Gas, petrochemicals projects are pursued. Infra metallurgy projects were also pursued.

Reentered into Algeria market and entered Nigeria and other African markets.  The company focuses to bring the international business on par with that of domestic over a period of time. The effort on global front will start yield starting from end of current fiscal.

NRL- Right issue by  Rs 138 crore to be invested and so far Rs 35 crore was  invested and balance will be paid when it is called for.