Engineers India (ENGR) has posted Rs978mn net profit in 2QFY19 (vs. our estimate of Rs1.06bn) mainly due to lower margin and dismal performance of high-margin consultancy business. However, its revenue grew by a healthy 59% YoY to Rs6.8bn led by 3.6x jump revenue from turnkey projects to Rs3.5bn, while consultancy business reported flat sales of Rs3.3bn. Despite strong revenue growth, EBITDA declined by 34% YoY to Rs915mn, while operating margin declined to 13.4% from 32.4% in 2QFY18 due to higher revenue-mix (51% vs. 22% in 2QFY18) of low-margin turnkey projects and one-off in 2QFY18. The margin of consultancy business fell by 275bps YoY to 29%. Order backlog rose by 37% YoY to Rs121.6bn, while order inflow...