ADVERTISEMENT

Engineers India Q2 Results Review - Mixed Set Of Numbers; Margins To Pickup In H2: Yes Securities

Healthy order book, lean balance sheet, strong project pipeline and strong growth visibility augurs well in the long run.

<div class="paragraphs"><p>Silhoutte of a construction crane is seen against sunset.  (Source: pxhere.com)</p></div>
Silhoutte of a construction crane is seen against sunset. (Source: pxhere.com)

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

Engineers India Ltd. reported a muted set of numbers, primarily led by weak execution in the consultancy segment (down 2% YoY) while turnkey segment reported 47% YoY growth.

Gross margin contracted ~1100 basis points YoY which led to Ebitda margin contraction of ~400 bps YoY at 5.4%.

Order inflows at Rs 3.4 billion declined 71% YoY. As on Q2 FY23 order book stands at ~Rs 84.3 billion (2.7 times trailing twelve months revenue), providing revenue visibility for next few quarters.

Going forward, management maintained FY23 revenue growth guidance of 15% and order inflows at ~Rs 40 billion.

We believe Engineers India’s healthy order book, lean balance sheet, strong project pipeline and strong growth visibility augurs well in the long run and expect the company to report revenue/profit after tax compound annual growth rate of 5%/51% over FY22‐FY25.

Click on the attachment to read the full report:

Yes Securities Engineers India Q2FY23.pdf

DISCLAIMER

This 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.