• Upside in revenue is largely due to strong growth in revenue of both consultancy & engineering project (C&EP) and turnkey projects (TP) business. Segment revenue of C&EP was up by 21% to Rs 333.03 crore or 78% of sales with burning out of strong C&EP order book. The segment revenue of TP leaped by 50% to Rs 96.06 crore. Strong growth in TP revenue despite no major contribution from large orders bagged in last fiscal seems largely due to claim settlement of an amount of Rs 37.42 crore relating to a project executed in previous years for which the client has levied price discount for delay in completion of the project.

• PBIT was up by 35% to Rs 154.36 crore with segment profit of C&EP up by 23% (to Rs 105.74 crore) and that of TP up by 71% (to Rs 48.62 crore). Segment margin of C&EP expanded by 40 bps to 31.8% and that of TP leaped by sharp 610 bps to 50.6%.

• Strong 470 bps expansion in operating profit margin is largely due to lower subcontract, construction material/equipment cost as well as lower staff cost. Subcontract cost as % to sales was down by 900 bps to 3.2%. The construction material/equipment cost was down by 280 bps to 2.6%. The staff cost was down by 160 bps to 44.0%. However the other expense was up by 870 bps to 17.8% thus offsetting part of the gain made at other cost heads.

• Other income was up by 17% to Rs 46.65 crore hit by lower interest on deposits. The interest cost was up by 113% (to Rs 0.07 crore) and the depreciation was higher by 17% (to Rs 6.19 crore). Thus the PBT was up by 24% to Rs 179.35 crore.

• EO income for the quarter and corresponding previous period was nil. The taxation was up by 27% to Rs 119.17 crore and the tax rate was lower at 33.6% compared to 35.1% in corresponding previous period. Thus the growth at PAT was 27% (to Rs 119.17 crore).

• The other comprehensive expense was up by 24% to Rs 2.35 crore and the total comprehensive income was up by 27% to Rs 116.83 crore.

Half yearly performance

Sales were up by 18% to Rs 804.46 crore. Facilitated together by higher sales and 290 bps expansion in OPM the operating profit was up by 32% to Rs 220.69 crore. After accounting for lower other income, higher interest and higher depreciation, the PBT was up by 13% to Rs 300.69 crore. Taxation was up by 15% to Rs 200.55 crore and thus the PAT was up by 16% to Rs 200.55 crore. PPA was nil compared to Rs 0.48 crore of expense in corresponding previous period. Thus the PAT after PPA was up by 15% to Rs 200.55 crore. The other comprehensive expense was up by 150% to Rs 4.70 crore and the total comprehensive income was up by 14% to Rs 195.86 crore.

Segment profit of C&EP was up by 32% (to Rs 196.66 crore) on a sale of Rs 657.51 crore, a rise of 21%. Segment profit of TP was down by 6% (to Rs 52.49 crore) on a sale of Rs 146.95 crore, a growth of 7%.

Other developments

Pursuant to public announcement published on June 17, 2017 and letter of offer dated July 17, 2017 the company has bought back its 41961780 number of equity shares of face value of Rs 5 each fully paid up at a buyback price of Rs 157/- per share through tender offer route and extinguished these shares on August 16, 2017. Post buyback the company's equity share capital as on Sep 30,2 017 stood at Rs 315.9558 crore comprising of fully paid up 631911420 shares having face value of Rs 5 each.