Engineers India Limited
7,505words
135turns
0analyst exchanges
5executives
Management on call
Sanjay Jindal
DIRECTOR (FINANCE).
Suvendu Padhi
COMPANY SECRETARY & IR.
R.P Batra
EXECUTIVE DIRECTOR F&A & IR.
Vivek Mehta
GENERAL MANAGER
Neha Narula
SENIOR MANAGER COMPANY
Key numbers — 40 extracted
rs,
Rs.1587 crore
1383 crore
15%
Rs.346 crore
436 crore
102 crore
68
crore
170 crore
205 crore
Rs.1.51
Rs.2.41
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Guidance — 20 items
Sanket Kapoor
opening
“So, going ahead what will be the efficiencies we are going to benefit from the shutdown and how is it production going to shape up?”
Sanket Kapoor
opening
“If we see on the coal business so how are you seeing H2 getting planned in terms of execution and in terms of our margin provides especially for our main business that is a consultancy engineering project business, which type of business outlook you are seeing going ahead?”
Sanket Kapoor
opening
“Sir going ahead for H2 sir can you give any ballpark number what kind of execution are we going to do in terms of the turnkey project and the consultancy business or a business growth idea for H2 compare the last H2 with this year H2 what kind of growth can we anticipate?”
Management
opening
“And we are sure we will achieve that figure because we are working with the our clients for the chaged orders and we are working with our clients for the new orders also.”
Management
opening
“Actually, yes our consultancy order book was 4029 crore on 31st March 22 and it is reduced to 3779 because, some part of the order book we have executed in the first half and we have got new orders also and we are working with our clients for the new orders and we hope that the order book will be strong at the end of financial year and definitely our financial year order book will be strong.”
Management
opening
“So, this is the reason because as you know project industry is a cyclic industry and there may be a fluctuation from the first quarter to second quarter.”
Management
opening
“So, going forward, we are expecting that certain change order will materialize with our clients and we expect to receive those change order and that will straightaway go into the turnover and maximum portion will contribute to the profit.”
Nimesh Maheshwari
opening
“So, one more question on the guidance side, you are guiding about 300 to 350 crores of PAT.”
Nimesh Maheshwari
opening
“How much PAT we can expect in the next half year?”
Management
opening
“In the NRL project we are getting dividend and we have already received a dividend of about 35 crore from the Numaligarh Refinery and right now we do not have any figure about the RFCL project and so I cannot comment on the RFCL profitability at this moment because the plant is under operation and I can assure you that this time there will not be a loss in the RFCL project.”
Risks & concerns — 3 flagged
So, initially maybe in this year we will be focusing on the studies and the engineering services, in maybe next financial year we will try and see that if something work comes and we are able to go for that and how much risk we can absorb.
— Management
And these are the cost plus project, we are not taking any risk in case there is an increase in the plant and machinery content cost that will be passed on to basically client.
— Management
So, our margins and risk are protected so, taking that into consideration we are expecting the margin in the tune of 3% to 4% only, but in case after the completion of the project in case any warranty, guarantee we are also making provision for the warranty, guarantee in case warranty, guarantee does not come then the margin will improve in that particular quarter or that particular financial year.
— Management
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Speaking time
69
14
12
12
11
6
6
3
2
Opening remarks
Kunal
Sir. I’ll just quickly introduce. Good afternoon participants welcome to the Engineers India Q2 FY23 Earning Call. From the management today we have Mr. Sanjay Jindal, who is the Director Finance; Mr. Suvendu Padhi, Company Secretary & IR, Mr. R.P Batra, Executive Director F&A and IR; Mr. Sunil Saxena, Executive Director Technical and IR; Mr. Amanpreet Singh Chopra, General Manager, CMD Office and IR; Mr. Vivek Mehta, General Manager Marketing and IR and Ms. Neha Narula, Senior Manager Company Secretary and IR. Sir, I will request to give us some opening remarks post which we will open the floor for a Q&A session.
Management
Okay, sure. Good afternoon everybody. We have declared our half year ended result for the financial year 22-23 on 9th November 2022. With respect to financial performance for the half year ended 30th September 2022 the company has registered turnover of Rs.1587 crore in comparison to 1383 crore for the last half year ended with an increase of 15%. In the current quarter, the company has achieved a turnover of Rs.346 crore in the consultancy and engineering segments and 436 crore in the turnkey business segment. There is increase in other income primarily due to dividend income earned by the company on the investment made in no Numaligarh Refinery Limited and its subsidiaries CIL. During the current quarter the company has profit before tax of 102 crore in comparison to 68 crore in the last quarter, vis-à-vis 170 crore for the current half year and 205 crore for the previous half years ended. With the increase in profits, EPS has increased to Rs.1.51 per share for the current quarter in
Kunal
Sure, sir. Thank you so much. We have the first question from Mr. Sanket Kapoor. Please unmute and ask your question.
Sanket Kapoor
Sir, firstly if you could mention what was the dividend from Numaligarh for the second quarter, how much we have received as dividend out of the 65 crore other income which we have booked for the quarter?
Management
In this quarter we have received a dividend of 35 crore and Numaligarh Refinery have declared dividend of Rs.11, Rs.6 was interim for the current year and Rs.5 for the last final year, final dividend of the last year and total dividend is 35 out of which 3 crore pertains to CIL and balance 32 crore from Numaligarh Refinery Limited. And let me give you good news also, yesterday there was AGM in Numaligarh Refinery Limited and they have declared bonus of 1:1 share.
Sanket Kapoor
Okay. Sir out of this total 93 crore which we have received for the first half what would be attributable to Numaligarh then?
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