2021-08-13 Engineers India Ltd. Prabhudas Lilladhar 71.65 129.00 71.65
(2.02%) 76.47 Buy

Q1FY22 Result Update - Turnkey execution picks up - BUY

reviving their capex plan, we expect ordering momentum will continue to remain strong, going forward. Tender pipeline remains strong given projects such as petrochemical expansion of BPCL and HMEL, MRPL refinery expansion, order from Rajasthan refinery, Kaveri basin (few package) and Bina refinery expansion to be awarded in FY22. We expect EILs healthy order book, lean balance sheet, strong project pipeline and strong growth visibility augurs well in the long run and expect EIL to report revenue/PAT CAGR of 9%/22% from FY21 to FY23. The stock is...

2021-06-14 Engineers India Ltd. ICICI Securities Limited

83.90 95.00 83.90
(-12.87%) 29.96 Hold

Engineers India

Going forward, we expect revenue, EBITDA to grow at CAGR of 4.9%, 19% CAGR, respectively, in FY20-23E with gradually increasing contribution from the consultancy segment over the next two to three years. EILs balance sheet continues to remain healthy with zero debt and cash balance of ~| 1500 crore despite investment of ~| 700 crore in NRL and ~ | 650 crore towards share buyback. We value core business at 10x P/E on FY23E EPS of | 8.0 and investments at book value multiple with revised target price of...

2021-06-09 Engineers India Ltd. Prabhudas Lilladhar

83.90 129.00 83.90
(-12.87%) 76.47 Buy

Q4FY21 Result Update - Strong performance in turnkey segment - BUY

includes Petrochemcial expansion of BPCL and HMEL, MRPL refinery Bina refinery expansion to be awarded in FY22. In the short term, we expect second wave of Covid 19 to impact the performance of company. However, given EILs healthy order book, lean balance sheet, strong project pipeline and good growth visibility augurs well in the long run. Given healthy FY21 performance primarily led by turnkey segment, we have revised our earnings estimate by 11.3%/11.9% for FY22E/23E. The stock is currently trading at 10.2x/7.8x FY22E/23E. We...

2021-02-01 Engineers India Ltd. Prabhudas Lilladhar

73.75 115.00 73.75
(-0.88%) 57.32 Buy

Q3FY21 Result Update - Order Inflow remains a concern - BUY

Order inflows of ~Rs1.9bn (down 48% YoY) constitutes of consultancy segment taking total order backlog to ~Rs83bn. Engineers India (EIL) reported subdued revenues of Rs8.4bn, down 6% YoY led by covid related execution challenges. Overall weak operating performance at turnkey levels led to lower than expected profitability. Margins in turnkey projects were weak at 1.4% v/s 3% in 3QFY20 and 1.9% in 2QFY21 thereby lowering overall margins. Order inflows de-grew by 48% YoY...

2020-11-24 Engineers India Ltd. ICICI Securities Limited

 

73.75 83.00 73.75
(-0.88%) Target met Hold

Engineers India

Decent inflows for H1FY21 but cautious guidance for FY21E For Q2FY21, EILs order inflows were decent at | 594 crore (| 166.7 crore in Q2FY20), all in the consultancy segment, primarily from customers like Gail, Odisha Mining, Bangladesh Petroleum, AAI, etc. Order book as on Q2FY21 was at | 8978 crore (vs. | 9116.8 crore in Q2FY20) comprising 49% from consultancy and 51% from turnkey segment. For Q2FY21, 86% came from domestic while 14% was from the overseas market. Decent order pipeline for next two years amid challenges...

2020-11-23 Engineers India Ltd. Motilal Oswal 73.75 89.00 73.75
(-0.88%) Target met Buy

Execution gradually ramping up

Engineers Indias (ENGR) 2QFY21 revenues were in-line with our estimates. Operating profit came in 13% lower than our estimate, owing to lower profitability from the Turnkey segment and a couple of one-off incomes, which was part of the operating profit of the base quarter. The buyback proposal for acquisition of 69.9m shares (~11% of total shares) at INR84/share is expected to be completed in the next three months. The same would happen via a tender offer, and the Government of India (GoI) would participate, with a stipulation of maintaining its shareholding at 51%...

2020-11-23 Engineers India Ltd. Prabhudas Lilladhar 72.90 104.00 72.90
(0.27%) 42.27 Buy

Q2FY21 Result Update - Ordering activity improving gradually - BUY

order book declined 17% YoY to Rs90bn. Management indicated the tendering pipeline remains healthy as the process of ordering continues during 1Q and expects an order inflow of ~Rs15bn for FY21E. Key project such as NRL, Kaveri Basin (few packages), HEML, petrochemical projects, etc. to be awarded in FY21E. HMEL petchem, MRPL expansion, Panipat...

2020-08-16 Engineers India Ltd. Prabhudas Lilladhar

73.50 104.00 73.50
(-0.54%) Buy

Q1FY21 Result Update - Execution run rate improving - BUY

Management indicated the tendering pipeline remains healthy as the process of ordering continues during 1Q and expects an order inflow of ~Rs15bn for FY21E. Key project such as NRL, Kaveri Basin (few packages), HEML, petrochemical projects, etc. to be awarded in FY21E. On the international market the company is witnessing a slowdown in ordering as countries like Oman, UAE, Saudi, etc have deferred their capex plan. We believe execution to remain under pressure for 2Q given the current challenging environment and is expected to garner pace from 3Q onwards....

2020-08-15 Engineers India Ltd. Motilal Oswal

68.35 89.00 68.35
(6.95%) Target met Buy

Normalcy to return gradually

15 August 2020 Engineers India (ENGR)s revenues were 14% higher than estimated; however, the lack of operating leverage led to a 16% miss in EBITDA. Margins in consultancy projects were weak at 14.3% v/s 39.3% in 1QFY20. Order inflows plunged 91% YoY to INR810m, with another INR160m worth of orders received thus far. Order inflows were primarily from the Hydrocarbon segment. The order book (OB) declined 20% YoY to INR91.2b, with OB/rev at 3.1x, the lowest in last four years. With superior execution and lower order inflows, a depleting order book remains a concern, although it is not alarming at this stage. On account of lower order inflows and a hazy outlook for FY21E, we reduce our FY21/FY22E EPS by 14%/5% and maintain our Buy rating, with TP of Revenue fell 36% YoY to INR4.7b (14% above our estimates). EBITDA was down 85% YoY to INR214m (16% below our estimate). The EBITDA margin stood at 4.

2020-06-27 Engineers India Ltd. Motilal Oswal

79.90 93.00 79.90
(-8.51%) Target met Buy

Favorable sales mix to aid profitability

26 June 2020 Revenues came in higher than estimated, led by superior performance in the Turnkey segment (74%/50% YoY increase in 4QFY20/FY20). With this, the revenue share of the low-margin Turnkey segment stood at 51% in FY20, up from 45% in FY19. An adverse revenue mix led to decline in EBITDA margins in 4QFY20/FY20. The order book declined 15% YoY to INR95.5b, with OB/Rev at 3x, the lowest in the last four years. With superior execution and lower order inflows, a depleting order book remains a concern, although it is not alarming at this stage. We tweak our FY21/FY22E EPS by -2%/+1% and maintain our Buy Revenues came in at INR8.5b, up 39% YoY (11% above estimate). EBITDA stood at INR1.1b, up 19% YoY (in-line). The EBITDA margin declined 220bp YoY to 13% on an adverse revenue mix. PBT stood at INR1.7b, up 17% YoY (in-line). The effective tax rate stood at 24.7% in 4QFY20 (v/s 35.

2020-06-27 Engineers India Ltd. ICICI Securities Limited

79.90 92.00 79.90
(-8.51%) Target met Buy

Engineers India

Decent inflows for FY20, cautious guidance for FY21E Order inflows for Q4FY20 came in at | 146 crore (| 1617 crore for FY20). All was from consultancy segment, taking the order backlog to | 9555 crore. For FY20, within consultancy, 50% came from domestic market, 50% from overseas market mostly from hydrocarbon sector, primarily from customers like MRPL, Numaligarh Refinery Expansion, IOCL, HPCL, ADNOC, etc....

2020-04-17 Engineers India Ltd. ICICI Securities Limited

 

68.80 80.00 68.80
(6.25%) Target met Buy

Engineers India

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....

2020-03-31 Engineers India Ltd. ICICI Securities Limited

 

59.05 52.00 59.05
(23.79%) Sell

Engineers India

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...

2020-02-06 Engineers India Ltd. ICICI Securities Limited 91.95 105.00 91.95
(-20.50%) Hold

Engineers India

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,...

2020-02-05 Engineers India Ltd. Motilal Oswal

92.95 130.00 92.95
(-21.36%) Buy

Adverse mix, higher provisions impact profitability

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.

2019-08-14 Engineers India Ltd. Reliance Securities

103.25 163.00 103.25
(-29.20%) Buy

Engineers India-1QFY20 Result Update

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 projects 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...

2019-08-14 Engineers India Ltd. Prabhudas Lilladhar 103.25 139.00 103.25
(-29.20%) Buy

Q1FY20 Result Update

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...

2019-05-18 Engineers India Ltd. Prabhudas Lilladhar

108.20 139.00 108.20
(-32.44%) Buy

Q4FY19 Result Update

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...

2019-02-11 Engineers India Ltd. ICICI Securities Limited 108.75 110.00 108.75
(-32.78%) Target met Hold

Engineers India

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...

2019-02-08 Engineers India Ltd. Motilal Oswal 110.75 145.00 110.75
(-34.00%) Buy

Hurt by weak Turnkey segment; order backlog provides strong revenue visibility

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.

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