Engineers India (ENGINERSIN) Q4 98/99 earnings summary

Executive summary

• FY1998-99 turnover was ₹3,917 million and net profit after prior-year tax adjustment was ₹1,181 million, versus ₹3,112 million and ₹732 million in FY1997-98; order bookings were substantially higher YoY.

• Growth reflected strong refinery activity, expanded pipeline and gas-processing work, international assignments, and continued development in LNG, power, IT and specialist engineering services.

Financial highlights

• Turnover, after work-in-progress adjustment, was ₹3,917 million; income from services rendered was ₹3,767 million, up from ₹3,124 million in FY1997-98.

• Operating profit was ₹1,178 million, other income ₹700 million and profit before tax ₹1,878 million, compared with ₹728 million, ₹414 million and ₹1,142 million, respectively, in FY1997-98.

• Profit after tax was ₹1,178 million before a ₹2.8 million reversal of earlier tax provision; reported profit after that adjustment was ₹1,181 million, versus ₹732 million in FY1997-98.

• Proposed dividend was ₹281 million, equal to 150% of paid-up capital, versus 40% in the prior year; ₹869 million was transferred to general reserves.

Outlook and guidance

• FY1999-2000 budget estimates indicated gross profit of ₹1,448 million, including profit on jobs unfinished at 31 March 1999 and contracts awarded or expected to be awarded during the year.

• FY1999-2000 MOU targets included turnover of ₹400 crore, turnkey project awards of ₹100 crore, a strong order book and further financial and technical achievements.

• Strategy focused on bidding for EPC services with selected partners, developing LNG, power and IT business, and expanding in overseas markets across the Middle East and Asia.