Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
- 10 Nov 2023
- ICICI Securities
-
Share
-
-
-
-
-
MUTED EXECUTION BUT MARGINS IMPROVED SIGNIFICANTLY ON YOY BASIS
ENGINERSIN - 251 Change: 0.38 (0.15 %)News: Revenue was down 0.6% YoY (-3.8% QoQ) to Rs 777.2 crore. Consultancy segment revenue (46% of total revenue) increased by 4.5% YoY while turnkey segment revenue (54% of total) declined by 4.7% YoY. However, EBITDA margin improved substantially by 688 bps YoY (+377 bps QoQ) to 12.2% mainly led by lower construction materials expenses and sub-contracting charges. Consultancy EBIT margin improved by 337 bps YoY to 22.8% (vs 19.4% in Q2FY23) while turnkey segment EBIT margin improved significantly to 11.8% (vs 3.1% in Q2FY23). Thus, on account of improvement in margins, PAT increased by 20% YoY (-10.1% QoQ) to Rs 102.2 crore.
Views: Order backlog at Rs 8188 crore as of Sept 2023 end remains healthy (2.5x of TTM revenues). Total order inflow during the quarter was Rs 1144 crore (Rs 835 crore in turnkey segment and Rs 309 crore in consultancy segment). Consultancy segment which contributes ~60% of total order book, expected to witness significant recovery led by execution of existing contracts and healthy orders pipeline in domestic & international markets. Apart from the existing core areas, company is looking for newer growth segments like green hydrogen, ammonia, bio-fuels, coal gasification, defence etc in margin-accretive consultancy segment. Moreover, company is also focusing on gaining orders from international markets (which contribute ~30% to the total consultancy orders).
Impact: Neutral