Engineers India Ltd. share price target

EIL may see some near term impact in Q1FY21E but execution pace for overall FY21E to be less impacted with lumpy execution in H2FY21E. As all domestic sites are seeking permission and following standard operating procedure (SOP), once approval is given, remaining projects will commence work from April 20, 2020....

Companies like Larsen & Toubro and KEC with exposure to the Middle East and North Africa (MENA) region are expected to get impacted by the recent more than 60% fall in crude oil prices to US$22/barrel. This is expected to impact overall orders/awarding from the MENA region. Companies like Elgi Equipments, AIA Engineering, Thermax, Engineers India and Kalpataru Power with exposure to international geographies like Europe, Middle East, China for sales or essential raw material may get impacted. However, lockdowns in India, UK, Europe and other geographies due to Covid-19 are...

Decent inflows for 9MFY20, cautious guidance for FY21E Order inflows for Q3FY20 came in at | 360 crore (| 1471 crore for 9MFY20), all from consultancy segment, taking the order backlog to | 10164 crore. Within consultancy, order inflow comprises | 327 crore from domestic and | 33 crore from overseas markets mostly from hydrocarbon sector, primarily from customers like MRPL, Numaligarh Refinery Expansion, IOCL, HPCL,...

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 (EIL) reported good set of numbers for 1QFY20, led by higher contribution coming from Consultancy Segment. Revenue/PAT up 28%/43% YoY, mainly led by strong revenue performance in Consultancy segment which grew by 38% YoY at Rs4.4 bn (included Rs966mn on account of change in order) and margin expansion in Consultancy segment. Order inflow during the quarter stood at Rs9.4 bn against Rs832 mn in 1QFY19, taking order backlog to Rs114 bn (42% Consultancy). Management indicated strong hydrocarbon tender activities in international geographies...

Consultancy Biz Drives Healthy Performance; Maintain BUY Engineers India (ENGR) has reported a healthy performance in 1QFY20 with its PAT surging by 43% YoY to Rs1.24 bn vs. our estimate of Rs1.05 bn. Its revenue grew by 28% YoY to Rs7.3bn led by 38% YoY jump in revenue of consultancy segment to Rs4.4bn, while turnkey project's revenue grew by 16% YoY to Rs2.9bn. EBITDA increased by 62% YoY to Rs1.4bn, while EBITDA margin expanded by 390bps YoY to 19% led by 1,135bps YoY improvement in margin of consultancy business. Margin of turnkey projects fell by 310bps YoY to 2.7%. The Company has provided one-time Rs260mn in other expenses for impairment loss for oil block. As major chunk of its...

Engineers India Ltd (EIL) reported good set of numbers for 4QFY19 with Change in Estimates | Target | Reco Sales/PAT up 20%/38% YoY, mainly led by strong revenue performance in Turnkey segment and margin expansion in Consultancy segment. EIL...

ICICI Securities Ltd | Retail Equity Research Engineers India (EIL) reported weak Q3FY19 numbers due to higher contribution from the low margin turnkey business Due to strong execution in turnkey segment, revenue booking in this segment jumped 163.8% YoY to | 234.5 crore. Accordingly, turnkey segment contributed 40.6% to the overall topline (normally contributes less than 25-35% to the overall business). This helped overall revenues grow 21.9% YoY to | 577 crore. Consultancy...

14 November 2018 Sales increased 22% YoY to INR5.8b, below our estimate of INR6.5b. EBITDA declined 30% YoY to INR949m, with the margin of 16.4% ahead of our estimate of 15.7%, given the better-than- estimated margin in Consulting segment. EBIT margin shrank by 770bp YoY to 30% in Consulting and by 600bp YoY to 6.1% in EPC off a high base (3QFY18 margins were supported by provision reversal). PAT declined 16% YoY to execution of orders in hand for BS-VI upgrades. On the other hand, Consulting sales declined 11% YoY to INR3.4b. green R&D; center at Bengaluru EPC order (INR107m), (b) PMC and EPCM service for Dangote refinery project (INR168m) and (c) design and detailed engineering for project engineering services (INR94m). Order book of INR107.9b stands healthy, with revenue visibility of 4.7x its TTM revenue.

ICICI Securities Ltd | Retail Equity Research Engineers India (EIL) reported weak Q2FY19 numbers due to higher contribution from the low margin turnkey business Due to strong execution in turnkey segment, revenue booking in the segment jumped ~3.5x YoY. Accordingly, turnkey segment contributed 51% to overall topline (normally contributes less than 2535% to overall business). This helped overall revenues grow 58.8% YoY to | 681.4 crore. Consultancy revenues (| 332.4 crore) were flat for...