Engineers India (ENGINERSIN) Q4 06/07 earnings summary

Executive summary

• FY07 turnover fell 28% YoY to Rs.57,108 lakh as LSTK revenue declined; core consultancy and engineering revenue grew 15% to Rs.48,875 lakh.

• PBT rose 2.4% to Rs.20,464 lakh and PAT increased 3.1% to Rs.14,299 lakh; new business awards reached a record Rs.1,916 crore, up 140% YoY.

Financial highlights

• Revenue was Rs.57,108 lakh versus Rs.79,048 lakh in FY06; operating profit was Rs.12,237 lakh versus Rs.13,311 lakh.

• Other income increased to Rs.8,227 lakh from Rs.6,667 lakh; total expenditure fell 32% to Rs.44,041 lakh, reflecting lower LSTK activity and cost control.

• PAT was Rs.14,299 lakh versus Rs.13,864 lakh; EPS rose to Rs.25.46 from Rs.24.69.

• Consolidated revenue was Rs.58,281 lakh, PBT Rs.20,957 lakh, PAT Rs.14,513 lakh and EPS Rs.25.84.

Outlook and guidance

• FY08 MoU targets envisage increases in turnover, exports and profits; performance to date met or exceeded several MoU targets despite lower turnover from limited LSTK work.

• Planned refinery capacity and clean-fuel upgrades, strategic crude storage, LNG terminals and pipeline investment are expected to create consultancy and project-management opportunities.

• National Gas Grid investment, offshore facility revamps and the Assam Gas Cracker project offer potential growth; management also plans to pursue selected domestic and overseas turnkey bids.