Engineers India - Q2FY21 Results - First Cut - Marginal miss led by LSTK segment - YES Securities

- Sales declined by 5.6% yoy to Rs6.8bn (-6% vs our est.) as Consultancy/LSTK segment revenues were down by 2%/9% yoy respectively.

- EBITDA was down 28% yoy as LSTK segment margin slumped from 7.7% to 1.9% while consultancy segment margin largely remained flat.

- Adjusted PBT stood at Rs1.24bn, down 25% yoy (-9% vs our est.)

- Cash flow from operations were at Rs452mn in H1FY21 vs negative Rs309mn in H1FY20

- Cash balance was at Rs26.9bn as on September 2020.

- Improvement in debtors as Debtors/Creditors stood at 61/33 days respectively vs 76/32 days as on March 2020.

The Company has approved share buy-back up to 69,869,047 equity shares for an amount not exceeding Rs5.87bn being 11.06% of the total number of equity shares at Rs~84 per equity share from all equity shareholders of the Company as on the record date, on proportionate basis, through tender offer.

Shares of ENGINEERS INDIA LTD. was last trading in BSE at Rs.71.15 as compared to the previous close of Rs. 70.7. The total number of shares traded during the day was 102196 in over 901 trades.

The stock hit an intraday high of Rs. 71.65 and intraday low of 70.65. The net turnover during the day was Rs. 7271442.

Source : Equity Bulls

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