Engineers India Q2 Review - Revenue Misses Our Estimate; Order Inflows Robust: Motilal Oswal
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Motilal Oswal Report
Engineers India Ltd.’s Q2 FY22 revenue was 12% below our estimate, with the miss led by lower than expected revenue in the consultancy segment.
Operating profit came in line with our estimate, with a favorable revenue mix (54% share of consultancy segment revenue) leading to higher than estimated Ebitda margin at 9.3% (estimate: 8.2%).
Lower than expected other income led to adjusted profit after tax 15% below our estimates.
Order inflows in Q2 /H1 FY22 stood at Rs 11.7 billion/Rs 14.5 billion, and ~30% higher versus H1 FY20 levels, thereby indicating a revival in ordering activity in its key end-market of oil and gas.
While oil and gas continues to remain a key end-market for Engineers India, the management is exploring other end markets where its expertise can be implemented (Biofuels).
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