• Downside at top-line is largely due to sharp fall in revenue of Lump-sum Turnkey Projects (LTP) business division. The segment revenue of Consultancy & Engineering Projects (C&EP) registered 14% growth to Rs 270.65 crore. On the other hand the segment revenue of LTP was down by 58% to Rs 54.36 crore.
• Contribution of C&EP to top-line increased to 83% from 65% in corresponding previous period. But that of LTP was down to 17% from 35% in corresponding previous period.
• EBIT for the quarter was up by 41% to Rs 95.16 crore facilitated by strong growth in segment profit of C&EP business of the company. The segment profit of C&EP was up by 72% to Rs 79.70 crore facilitated by higher sales and 990 bps expansion in its segment margin to 29.4%. The segment profit of LTP stood lower by 26% (to Rs 15.46 crore) hit largely by lower sales as its segment margin jumped by 1240 bps to 28.4%.
• Sharp expansion in OPM to the extent of 1180 bps to 24.9% was largely due to lower construction material cost and sub contract payments. Construction material cost as proportion to sales was lower by 1680 bps to 3.7%. Similarly the sub contractor payment was down by 400 bps to 12.3%. But the staff cost was higher by 720 bps to 47.8%. And that of other expenses were higher by 170 bps to 11.3%. Though staff cost and OE stood higher that could not fully offset the gain in other cost heads thereby lead to sharp expansion in OPM. Lower construction and subcontract payment is largely due to change in revenue mix with the contribution from C&EP being higher for the quarter compared to corresponding previous period.
• Other income was down by 9% to Rs 55.86 crore, the interest cost was up by 56% to marginal Rs 0.06 crore and the depreciation was up by 12% to Rs 5.90 crore. Thus the PBT was up by 26% to Rs 130.81 crore.
• Taxation stand higher by 26% (to Rs 45.82 crore) in absolute term and the tax rate was marginally higher at 35.0% compared to 34.9% in corresponding previous period. Thus the PAT was up by 26% to RS 84.99 crore.
• Other comprehensive expense was down by 63% to Rs 0.71 crore. And thus the total comprehensive income was up by 28% to Rs 84.28 crore.

Nine month performance

Sales were lower by 17% to Rs 1005.71 crore and the operating profit was up by 68% to Rs 247.94 crore as the OPM expand by 1250 bps to 24.7%. After accounting for lower other income, higher interest and lower depreciation cost the PBT was up by 29% to Rs 397.86 crore. The taxation was up by 26% to Rs 138.81 crore but the tax rate was lower at 34.9% compared to 35.6% in the corresponding previous period. Thus the PAT was up by 31% to Rs 259.05 crore. After accounting for lower other comprehensive expenses of Rs 2.59 crore (down 40%) the total comprehensive income was up 32% to Rs 256.46 crore.

Segment profit of C&EP was up by 35% (to Rs 228.73 crore) facilitated by higher sales (up 13% to Rs 814.18 crore) and 450 bps expansion in segment margin to 28.1%. However despite lower sales (down 61% to Rs 191.53 crore) the segment profit of LTP was up by 92% to Rs 71.03 crore largely spurred by 2960 bps expansion in segment margin to 37.1%.

Other developments

The Shareholders of the company in their extra ordinary general meeting held on 23rd December, 2016 approved the issue of bonus shares in the ratio of 1:1, i.e. one new equity bonus share of Rs. 5/- each for one existing fully paid up equity share of Rs. 5/- each held. The issue and allotment of 33,69,36,600 bonus shares was made by the Company on 3rd January, 2017. Post allotment of bonus shares, company's share capital consist of 67,38,73,200 equity share of Rs. 5/- each amounting to Rs. 336.94 crores.

During the month of January, 2017, the President of India, acting through the Ministry of Petroleum and Natural Gas, Government of India, has sold 90,15,823 equity shares of the company to Central Public Sector Enterprise Exchange Traded Fund (CPSE ETF) through a Further Fund Offer (FFO) in terms of Scheme framed in this regard. Due to above, Government of India (Promoter) holding was reduced from 58.87% to 57.53%.

The stock hovers around Rs 151.95.