Engineers India Ltd. share price target

FY25 order intake was Rs82.1bn with domestic consultancy/overseas consultancy/turnkey mix of 43%/13%/44%. We cut our FY26/27E EPS estimates by -7.0%/-5.5%, factoring in lower dividends from equity investments leading to lower other income and downgrade our rating from Buy' to Accumulate' due to sharp run up in the stock price. Engineers India (EIL) reported a strong quarter with 25.5% YoY...

Engineers India (EIL) reported a rather subdued quarter with a 25% decline in revenues; and decline in EBITDA margin (aided by decline in consultancy margins) – resulting in a 52% decline in profit (PAT).

Engineers India reported a good set of numbers for Q1FY24. Revenue came in at INR 8.1bn (flat YoY) while EBITDA improved 49% YoY to INR 685mn primarily aided by overall margin expansion of 276bps, which can be attributed primarily to 836bps margin expansion YoY in consultancy segment.

Engineers India (EIL) reported a strong set of numbers with Q4FY23 EBITDA up 51% YoY to Rs1.6bn (I-Sec: Rs1.4bn) led mainly by 540bps YoY margin expansion to 18.8%. PAT grew 26% YoY to Rs1.6bn (I-Sec: Rs1.4bn).

Engineers India’s (EIL) Q3FY23 revenue grew ~22% YoY to Rs8.3bn led by strong execution in turnkey segment. This is the third consecutive quarter where turnkey witnessed strong performance. However, due to higher revenue share from turnkey, (58% in Q3FY23 vs 47% in Q3FY22), coupled with weak margin in consultancy business (-410bps YoY), EBTIDA margin contracted 360bps YoY to 5.6%.

Engineers India’s (EIL) Q2FY23 revenue grew 21% YoY to Rs7.8bn led by healthy execution in the turnkey segment.

Engineers India’s (EIL) Q1FY23 revenues grew 9.5% YoY to Rs8bn led by healthy execution in the turnkey segment.

ENGR's 3QFY22 revenue was 25% below our estimate, with the miss led by a 25%/26% miss in the Consultancy/Turnkey segment. Operating profit stood at INR625m, 48% below our estimate. This was on account of an unfavorable revenue mix, with 47% revenue from Turnkey projects. EBITDA margin stood at 9.2% (est. 13.2%) on account of high input costs. Order inflows in 3Q/9MFY22 stood at INR564m/INR15b (-70%/+74% YoY) and flat v/s 9MFY20 levels, thereby indicating a revival in ordering activity in its key end-market of Oil and Gas. While Oil and Gas continue to remain a...

ENGR's 2QFY22 revenue was 12% below our estimate, with the miss led by lower than expected revenue in the Consultancy segment. Operating profit came in line with our estimate, with a favorable revenue mix (54% share of Consultancy segment revenue) leading to higher than estimated EBITDA margin at 9.3% (est. 8.2%). Lower than expected other income led to adjusted PAT 15% below our estimates. Order inflows in 2Q/1HFY22 stood at INR11.7b/INR14.5b (+96%/+115% YoY), and ~30% higher v/s 1HFY20 levels, thereby indicating a revival in ordering...

Engineers India’s (EIL) Q2FY22 performance was muted due to weak execution in both consultancy and turnkey segments. During the quarter, the company booked two large orders from Chennai Petroleum Corporation Limited (CPCL), Nagapattinam, leading to a total order inflow of Rs11.7bn.