Engineers India - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 75; MCap: Rs. 4730 crore)

Engineers India reported a muted set of numbers for Q3FY21. Revenues declined by 6.0% on the back of slower execution across segments while EBITDA margin decline was the result of lower margins in the Turnkey segment on YoY. EIL reported order inflows came in at Rs. 189 crore for the quarter.

Q3FY21 Earnings Summary

- Engineers India reported standalone revenues at Rs. 836.7 crore with a decline of 6.0% on YoY basis. Consultancy and turnkey (LSTK) segments contributed 43% and 57%, respectively

- For Q3FY21, Consultancy revenue de-grew by 1.9% to Rs. 358.3 crore on YoY basis while turnkey revenue de-grew by 9.0% to Rs. 478.5 crore, on YoY owing to slower execution

- Absolute EBITDA came in at Rs. 75.1 crore, with a decline of 12.3% on YoY basis while Overall EBITDA margin came in at 9.0%, contracting by 60bps, YoY mainly on account lower margins in turnkey segment, higher employee expenses in the quarter. Consultancy and turnkey segments reported EBIT margins of 25.4% (Vs. 24.7% in Q3FY20) and 1.4% (Vs. 3.0% in Q3FY20), respectively

- EIL reported PAT at Rs. 88.2 crore which declined by 18.8% on YoY basis partly impacted by lower other income which declined by 27%, YoY to Rs. 48 crore

- For Q3FY21, EIL's order inflows came decent at Rs. 189 crore (Rs. 360 crore in Q3FY20), all in the consultancy segment. Order book as on Q3FY21 stood at Rs. 8297 crore (Vs. Rs. 8978 crore in Q2FY21) comprising 51% from consultancy and 49% from turnkey segment

EIL revenues marginally impacted by execution challenges while EBITDA margins declined on the back of lower margins in the turnkey segment, relatively higher employee expenses in the quarter.

Shares of ENGINEERS INDIA LTD. was last trading in BSE at Rs.74.85 as compared to the previous close of Rs. 73.9. The total number of shares traded during the day was 78303 in over 568 trades.

The stock hit an intraday high of Rs. 75.05 and intraday low of 72.55. The net turnover during the day was Rs. 5806090.

Source : Equity Bulls

Keywords