The company during the current quarter has received variation orders from two of its clients. The cumulative impact of these variation order on turnover and operating profit during the quarter was Rs 70.03 crore and Rs 65.06 crore respectively.

• Upside at top-line is largely due to strong revenue growth at both Consultancy & Engineering Projects (C&EP) as well as Lump-sum Turnkey Projects (LTP). The segment revenue of C&EP was up by 42% to Rs 384.52 crore and that of LTP was up by 64% to Rs 88.90 crore.
• Contribution of C&EP to top-line declined to 81% from 83% in corresponding previous period. But that of LTP increased to 19% from 17% in corresponding previous period.
• EBIT for the quarter was up by 63% to Rs 154.75 crore facilitated by strong growth in segment profit of C&EP business of the company. The segment profit of C&EP was up by 81% to Rs 143.97 crore facilitated by higher sales and 800 bps expansion in its segment margin to 37.4%. The segment profit of LTP was down by 30% to Rs 10.78 crore hit by 1630 bps crash in its segment margin to 12.1%.
• OPM expanded by 360 bps to 28.% and that is facilitated by lower staff and sub contract expenses. Staff cost as proportion to sales was lower by 790 bps to 39.9%. Similarly the sub contractor payment was down by 70 bps to 11.6%. But the construction material cost was higher by 150 bps to 5.2% and that of other expenses were higher by 340 bps to 14.7%.
• Other income was down by 30% to Rs 39.30 crore, the interest cost was up by 49% to Rs 0.09 crore and the depreciation was flat at Rs 5.89 crore. Thus the PBT was lower by 29% to Rs 168.15 crore.
• Taxation stand higher by 22% (to Rs 54.75 crore) in absolute term and the tax rate was higher at 35.5% compared to 34.7% in corresponding previous period. Thus the PAT was higher by 27% to Rs 108.46 crore.
• Earlier period tax provision was Rs 0.06 crore, a fall of 89%. Thus the Net profit after PPT was up by 28% to Rs 108.40 crore.

Nine month performance

Sales were lower by 27% to Rs 1277.87 crore and the operating profit was up by 43% to Rs 355.53 crore as the OPM expand by 310 bps to 27.8%. After accounting for lower other income, higher interest and higher depreciation cost the PBT was up by 18% to Rs 468.84 crore. The taxation was up by 24% to Rs 176.63 crore but the tax rate was marginally lower at 34.1% compared to 34.9% in the corresponding previous period. Thus the PAT was up by 19% to Rs 309.01 crore. After accounting for higher short provisioning of earlier period tax and higher other comprehensive expenses the total comprehensive income was up 18% to Rs 301.59 crore.

Segment profit of C&EP was up by 49% (to Rs 340.63 crore) facilitated by higher sales (up 28% to Rs 1042.03 crore) and 460 bps expansion in segment margin to 32.7%. However despite higher sales, the segment profit of LTP was down by 11% to Rs 63.27 crore hit largely by 1030 bps expansion contraction in segment margin to 26.8%.