Engineers India (ENGINERSIN) Q4 99/00 earnings summary

Executive summary

• Turnover rose 57% YoY to Rs 6,156.7m; net profit after prior-year tax adjustment reached Rs 1,262m, up from Rs 1,181m.

• Refinery, petrochemical, pipeline and overseas project wins supported growth; three EPC contracts marked expansion into turnkey execution.

• FY2000-01 plans emphasized higher turnover, EPC activity and diversification into power, LNG and IT services.

Financial highlights

• Income from services rendered was Rs 6,157m versus Rs 3,917m; reported turnover included a Rs 1,715m increase in work-in-progress.

• Operating profit was Rs 1,156m versus Rs 1,178m; other income rose to Rs 776m from Rs 700m, and PBT was Rs 1,932m versus Rs 1,878m.

• Profit after tax was Rs 1,302m versus Rs 1,178m; after a Rs 40m adjustment for earlier-year tax, net profit was Rs 1,262m versus Rs 1,181m.

• Expenditure, including depreciation, rose to Rs 5,001m from Rs 2,739m; salaries and benefits increased to Rs 2,048m from Rs 1,684m.

Outlook and guidance

• FY2000-01 MOU targets included turnover of Rs 6,900m and gross margin of Rs 2,030m, alongside financial and technical targets.

• Estimated FY2000-01 gross profit was Rs 1,945m under the MOU, including profit on jobs unfinished at 31 March 2000 and new contracts awarded or expected during the year.

• Three EPC wins and bids submitted during the year were expected to support further EPC business; LNG and power remained targeted diversification areas.