Engineers India (ENGINERSIN) Q4 07/08 earnings summary

Executive summary

• FY08 turnover reached Rs 73,775 lakh, PBT Rs 29,388 lakh and PAT Rs 19,460 lakh; consultancy and engineering turnover rose 27% YoY to a record Rs 62,144 lakh.

• New business secured hit a record Rs 3,202 crore, up 67% YoY, led by domestic consultancy and major refinery, petrochemical, pipeline and infrastructure awards.

• Board recommended 110% total dividend on paid-up capital, including the 40% interim dividend already paid; total outlay including dividend tax was Rs 7,206 lakh.

Financial highlights

• Total income rose to Rs 87,332 lakh from Rs 67,887 lakh; service income was Rs 73,775 lakh and other income Rs 13,557 lakh.

• PBT increased 44% YoY to Rs 29,388 lakh; PAT increased 36% to Rs 19,460 lakh, after tax provisions and prior-period adjustments.

• LSTK revenue grew to Rs 11,631 lakh from Rs 8,233 lakh; expenditure was Rs 57,944 lakh, including Rs 32,594 lakh in salaries and benefits.

• Strong operating cash generation supported cash and bank balances of Rs 125,258 lakh at year-end, up from Rs 94,142 lakh.

Outlook and guidance

• FY09 MoU with the Ministry of Petroleum & Natural Gas envisaged growth in turnover, exports and profits; several FY08 MoU targets were met or exceeded.

• Refinery expansion and fuel-specification upgrades, petrochemicals capacity, pipelines and infrastructure were identified as growth opportunities; domestic refining capacity additions of 91 MMTPA were anticipated in the XI Plan.

• Global strategy prioritized overseas EPC/LSTK awards and medium-to-large engineering, PMC and EPCM assignments; plans included expansion in existing markets and entry into new territories.

• Project milestones included expected commissioning of Dahej LNG expansion by Dec 2008, Panipat cracker in Q4 2009 and Bina Refinery completion by Dec 2009.