Engineers India Ltd.

NSE: ENGINERSIN | BSE: 532178 | ISIN: INE510A01028 | Industry: Consulting Services
| Mid-range Performer

208.97
1.59%
Motilal Oswal
5 February 2020 Even though Turnkey revenue booking during the quarter led to a big surprise on the revenue front, the operating performance was weak as the same carried low margins of ~3% v/s 25% for Consultancy business. Order book declined 6% YoY to INR102b, marking the second consecutive quarter of downtrend. We increase our EPS estimate by 4% for FY20 (largely on account of higher other income), but broadly maintain it for FY21/22. We maintain our reflect the weak ordering outlook. Revenue increased 54% YoY to INR8.9b on account of higher revenue from Turnkey segment. Revenue from Consultancy increased 7% YoY to INR3.6b, while Turnkey of Turnkey, which was exactly opposite in 3QFY19 in favor of Consultancy. EBITDA declined 10% YoY to INR856m a 10% miss as the margin of 9.6% was below our estimate of 14.7% due to an adverse revenue mix and higher provisions done for recently acquired projects.
Engineers India Ltd. is trading below its 50 day SMA of 217.0
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