Engineers India (ENGINERSIN) Q4 19/20 earnings summary

Executive summary

• FY20 standalone turnover reached a post-FY11-12 high of ₹3,203 crore; PBT was ₹675.51 crore and PAT ₹430.24 crore.

• Standalone revenue grew 31% YoY, while PBT and PAT rose 19% and 16%, respectively; new business secured was ₹1,617.31 crore.

• COVID-19 had no significant FY20 operational impact, but management flagged medium-term disruption and deferred investment risks.

Financial highlights

• Standalone revenue from operations was ₹3,203.05 crore vs ₹2,444.34 crore in FY19; other income was ₹258.03 crore vs ₹225.08 crore.

• Standalone operating expenses totaled ₹2,785.58 crore; PBT was ₹675.51 crore, PAT ₹430.24 crore and basic/diluted EPS ₹6.81 vs ₹5.86.

• Consolidated revenue was ₹3,236.54 crore, PBT ₹683.02 crore, PAT ₹423.82 crore and EPS ₹6.71 vs ₹5.83.

• Operating cash flow was ₹371.74 crore standalone vs ₹544.72 crore in FY19; cash and cash equivalents were ₹24.46 crore at FY-end.

Outlook and guidance

• FY20 orders totaled ₹1,617.31 crore: domestic consultancy ₹811.93 crore and overseas consultancy ₹805.37 crore; all orders were in consultancy.

• Unsatisfied performance obligations were ₹9,555.43 crore at March 2020; ~29% was expected to convert to revenue within one year.

• Management expected near-term low-cost revamp opportunities and a 3–5 month construction recovery, while scheduled Indian projects could face short deferrals.

• RFCL’s fertilizer complex was expected to commission by Q3 FY21; pre-commissioning was at an advanced stage.