Engineers India Q1 Results Review - Tender Pipeline Remains Positive: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Our view Engineers India Ltd. reported a muted result, with flat YoY revenue growth. Gross margin contracted ~50 basis points YoY. Due to reversal of certain provisions, Ebitda margin expanded YoY at 8.5%. Order inflows at Rs 12.6 billion grew on a low base of Rs 2.2 billion. As on Q1 FY24 order book stands at ~Rs 81 billion (2.5 times trailing twelve months revenue), providing revenue visibility for next few quarters. Going forward, management expects FY24 order inflows to match FY23 levels and revenue growth of ~10%. Opportunity pipeline consists of refinery expansion by Bharat Oman Refineries Ltd. and private players, petchem complexes by Oil and Natural Gas Ltd., investment in oil-to-chemicals plants, Indian Oil Corporation Ltd. Paradip complex, etc.Looking forward We believe Engineers India’s healthy order book, lean balance sheet, strong project pipeline and technical expertise in new-age segments and expanding global footprint augurs well in the long run and expect the company to report revenue/profit after tax compound annual growth rate of 13%/29% over FY23‐ FY25. The stock is currently trading at a price/earnings of 19.3 times/15.1 times FY24E/25E earnings per share. With the recent run-up in the stock price, we downgrade the stock to 'Reduce' with a revised target price of Rs 143. Result Highlights.Revenue stood flat at Rs 8 billion (our estimate: Rs 8.8 billion) with both Turnkey (+2% YoY) and consultancy segment (-1% YoY) reporting weak revenue performance.Ebitda margin saw 110 bps compression (adjusted for Rs 3.1 billion provision towards PF in base quarter) coming in at 8.5%.As a result, adjusted profit after tax (adjusted for Rs 5.56 billion received as client settlement in other income) fell 29% YoY to Rs 583 million (our estimate: Rs 986 million).Order Inflow grew 7% versus trailing twelve months average led by consultancy business (Rs 4.44 billion, +41% versus trailing twelve months average) while Turnkey projects saw moderate order inflow of Rs 8.2 billion (- 29% versus trailing twelve months average).Click on the attachment to read the full report:.Voltamp Transformers Q1 Results Review - Robust Quarter; Outlook Remains Sanguine: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Engineers India Q1 Results Review - Tender Pipeline Remains Positive: Yes Securities

Opportunity pipeline consists of refinery expansion by BORL, ONGC, investment, Indian Oil, Paradip complex, etc.

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