• Upside at top-line is largely due to strong double digit growth in revenue of both Consultancy & Engineering Projects (C&EP) as well as Lump-sum Turnkey Projects (LTP). The segment revenue of C&EP was up by strong 38% to Rs 444.55 crore. The company has received variation order in C&EP segment and the impact of the same on the turnover during the quarter was Rs 96.6203 crore. Excluding this the segment revenue of C&EP would have grown by just 8% to Rs 347.93 crore.

• The segment revenue of LTP on the other hand was higher by 16% to Rs 290.35 crore. Contribution of C&EP to top-line increased to 60% from 56% in corresponding previous period. But that of LTP decreased to 40% from 44% in corresponding previous period.

• EBIT for the quarter grew by strong 74% to Rs 182.48 crore largely due to strong growth in segment profit of C&EP business. The segment profit of C&EP jumped up by 94% to Rs 174.55 crore facilitated together by higher sales and higher margin. Segment margin of C&EP was up by 1130 bps to 39.3%. The segment profit of C&EP was positively impacted by variation order to the tune of Rs 84.7850 crore. Excluding the impact of variation order the segment margin stood at 25.8% and the segment profit would have been nearly flat.

• The segment profit of LTP however was down by 46% to Rs 7.93 crore, despite strong mid teen growth in revenue. Fall in segment profit despite higher sales in case of LTP was due to 320 bps fall in segment margin to 2.7%.

• Strong 390 bps expansion in OPM was largely due to increased contribution to topline from high margin C&EP business. But for provision towards impairment of exploration expenditure relating to oil & gas exploration blocks amounting to Rs 26.4363 crore which was accounted as part of other expenses, the expansion in OPM would have been higher. Excluding the provision towards impairment of exploration expenses, the OPM was higher by 750 bps to 22.6% and the operating profit up by 92% to Rs 165.90 crore.

Consolidated sales was up by 27% to Rs 742.66 crore and that together with 360 bps expansion in OPM facilitated 57% growth in operating profit to Rs 141.01 crore. While the PBT (before EO) was up by 42% to Rs 194.18 crore, the PAT was up by 40% to Rs 125.78 crore. With share of loss from JV stand lower by 56% to Rs 0.05 crore, the net profit was up by 41% to Rs 125.73 crore.

On deducting the standalone financials from consolidated financials the sales of subsidiaries was down by 18% to Rs 7.76 crore and with 1600 bps crash in OPM to 20%, the operating profit was down by 54% to Rs 1.55 crore. Eventually the PAT was lower by 43% to Rs 1.68 crore.

Yearly performance

Standalone sales was up by 37% to Rs 2444.34 crore and with OPM crash by 810 bps to 15%, the operating profit was down by 11% to Rs 366.01 crore. However, the PBT was flat (up 0%) at Rs 567.51 crore largely due to higher other income (up 25% to Rs 225.08 crore). But with taxation stand higher by 10% to Rs 203.41 crore, the PAT was lower by 5% to Rs 364.09 crore. Eventually the net profit (after PPT) was down by 2% to Rs 370.07 crore with PPT being a write back of Rs 5.98 crore compared to a provision of Rs 5.33 crore in the corresponding previous period.

Segment profit of C&EP was down by 10% to Rs 389.38 crore as its sales stand lower by 2% to Rs 1349.47 crore and segment margin contract by 230 bps to 28.9%. The segment profit of LTP was down by 17% to Rs 62.79 crore despite 168% jump in its sales to Rs 1094.87 crore was largely due to crash in its segment margin to 5.7% from 18.5% in previous year.

Order book

Order book as end of June 30, 2019 was Rs 11429 crore compared to Rs 7229 crore as end of Jun 2018 and Rs 11188.7 crore as end of March 2019. Of the order book consultancy orders were Rs 4832 crore (or 42% of order book) and lumpsum turnkey orders were Rs 6597 crore (or 58% of order book). Of the consultancy order book domestic orders were 87% and overseas orders were 13%.

Orders booked/inflow in Q1FY20 was Rs 943.6 crore [consultancy domestic Rs 195.1 crore; consultancy overseas Rs 748.5 crore] compared to Rs 83.2 crore in corresponding previous period.