Engineers India (ENGINERSIN) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 turnover after work-in-progress adjustment was Rs. 7,876 million, up 28% YoY; net profit was Rs. 1,257 million versus Rs. 1,302 million.

• New business secured totalled Rs. 6,460 million; major awards came from refinery, offshore platform and pipeline work, keeping the order book satisfactory relative to manpower.

• Two sizeable LSTK contracts were secured against multinational competition; LSTK projects generated ~45% of revenue during the year.

• Diversification advanced into infrastructure and related sectors, with Strategic Business Units established for selected new areas.

Financial highlights

• Income from services rendered was Rs. 9,728 million before a Rs. 1,852 million decrease in work-in-progress; adjusted turnover was Rs. 7,876 million versus Rs. 6,157 million.

• Expenditure was Rs. 6,632 million versus Rs. 5,001 million; operating profit reached Rs. 1,244 million versus Rs. 1,156 million.

• PBT was Rs. 1,957 million versus Rs. 1,932 million; tax provision was Rs. 700 million versus Rs. 630 million; net profit was Rs. 1,257 million versus Rs. 1,302 million.

• After prior-year tax adjustment, profit available was Rs. 1,239 million versus Rs. 1,262 million; proposed dividend was Rs. 376 million, plus Rs. 38 million dividend tax.

Outlook and guidance

• FY 2001-02 MOU targets turnover of Rs. 720 crore and gross margin of Rs. 182 crore, alongside other financial and commercial goals.

• Estimated FY 2001-02 gross profit was Rs. 1,730 million under the MOU; it includes profit on jobs unfinished at 31 March 2001 and contracts awarded or expected during FY 2001-02.

• Further LSTK projects were planned, with project size to increase gradually; additional PMC opportunities were emerging for EPC-mode projects.