Engineers India Limited (EIL)
Ø EIL, 90.4% owned by government, has reported very good performance for Q2 FY 2009. Net Sales doubled to Rs. 344 crore
(Rs. 166.99 crore) led by substantial jump in Lump Sum Turnkey (LSTK) turnover of Rs. 161.94 crore (Rs. 17.91 crore). It
should be noted that LSTK business is not evenly spread out. Company books turnover as per % of completion of contract.
Consultancy & Engineering business registered 22.1% increase in sales of Rs. 182 crore. OPM% however declined to 18.5%
(28.1%) due to change in sales composition more in favour of lower margin LSTK business. Nevertheless, strong sales
growth coupled with 25% higher other income of Rs. 37.5 crore led to 35% increase in PBT of Rs. 98.8 crore (Rs. 73.13
crore) and 33% increase in PAT of Rs. 66.17 crore.
Ø For H1 FY 2009, net sales zoomed to Rs. 596.44 crore (Rs. 317.48 crore). OPM% dropped to 17.9% (23.6%). PBT was up
by 33% to Rs. 174.3 crore (Rs. 131.3 crore) and PAT by 33.2% to Rs. 116.81 crore (Rs. 87.67 crore).
Ø EIL provides complete range of project services right from conceptualization, designing, engineering to LSTK projects in
diverse fields like petroleum refineries, pipelines, petrochemicals, oil & gas processing, offshore structures & platforms,
fertilizers, metallurgy and power.
Ø In FY 2008, company diversified into infrastructure consultancy area like Urban Development, Air-port development, Water
Management, Railway Freight Corridor and Intelligent Buildings etc. During FY 2008, company received 3 projects orders
viz., Yamuna River clean up, Stadium for Common Wealth Game and Re-development of Cannaught-Delhi. Besides, EIL
has achieved significant breakthrough in Airport sector where it has been appointed as Owner’s Engineers for Delhi and
Mumbai airports. This will provide reference when EIL go for smaller airport projects worth Rs.300 - 400 crore. As on
September pending order book was ~ Rs.200 crore.
Ø EIL’s strength in hydrocarbon segment can be measured when company won the consultancy contract of Rs.800 crore