Engineers India (ENGINERSIN) Q4 17/18 earnings summary

Executive summary

• FY2017-18 delivered higher turnover and profits amid stiff competition, with ₹2,140.57 crore of new business secured across domestic consultancy, domestic turnkey and overseas consultancy.

• Work continued across refining, petrochemicals, pipelines, infrastructure and overseas projects; the outlook cited planned energy-sector investment and expanding international opportunities.

Financial highlights

• Standalone total income was ₹1,967.05 crore, up 17.6% YoY; PBT was ₹568.10 crore, up 13.5%, and PAT was ₹377.87 crore, up 16.2%.

• Standalone revenue from operations was ₹1,787.58 crore versus ₹1,448.64 crore; consolidated revenue from operations was ₹1,824.31 crore versus ₹1,479.73 crore.

• Consolidated PBT was ₹579.09 crore and profit attributable to owners was ₹383.31 crore; consolidated EPS was ₹5.92 versus ₹4.90.

• Operating cash flow was ₹587.19 crore standalone and ₹598.79 crore consolidated; standalone year-end cash and cash equivalents were ₹24.56 crore.

Outlook and guidance

• The 2018-19 MoU with the Ministry of Petroleum and Natural Gas sets performance targets for turnover, operating profit, new business secured and R&D.

• Planned investment by oil and gas majors is expected to create opportunities, particularly in midstream and downstream projects, integrated refinery-petrochemical complexes and standalone petrochemical plants.

• Overseas growth priorities include leveraging assignments and presence in the Middle East and Africa, and pursuing opportunities in Central Asia, Bangladesh, Mongolia and Mauritius.

• Outlook remains subject to downside risks and changing conditions in India and abroad; actual results may differ from projections.