Engineers India Limited Q2 FY24 earnings conference call: https://www.youtube.com/watch?v=a1slTI2dBLY
- Introduction (00:01): The call, hosted by Dam Capital Advisors Limited, begins with a welcome message and a reminder that participants will have a chance to ask questions after the presentation.
- Introduction of EIL Management (00:35): Ms. Buika N introduces the EIL management team, including Mr. Sanjay Jindal (Director of Finance), Mr. Sendu P (Company Secretary and IR), Mr. RP Batra (Executive Director, Finance and Accounts and IR), Mr. Sun Saka (Executive Director Technical and IR), Mr. Aman Singh Chopra (Senior General Manager, CMD Office and IR), Mr. Viv Maida (General Manager, Marketing BD and IR), and Miss Niha Narula (Senior Manager, Company Secretariate).
- Opening Remarks by Mr. Jindal (01:13): Mr. Jindal provides an overview of the financial results for Q2 and the first half of FY 2324, noting a turnover of INR 777 crore for Q2 and INR 1,586 crore for the half-year. He details segment-wise turnover and highlights an increase in profit before tax (PBT) and profit after tax (PAT), with a notable improvement in EPS.
- Order Book Status (03:37): Mr. Jindal mentions the company’s order book value of INR 8,188 crore, divided between the consultancy segment and the turnkey segment.
- Q&A Session Announcement (04:28): The floor is opened for a Q&A session, with instructions for participants on how to ask questions.
- Question on Financial Adjustments (05:17): An analyst asks about adjustments related to liquidity damage settlement, leading to a discussion on margins and revenue adjustments. Mr. Jindal clarifies the impact of a 45 crore adjustment on turnover and profit.
- Discussion on Turnkey Segment Margins (05:55): The conversation shifts to margins in the turnkey segment, with explanations on quarter-to-quarter variations and long-term margin expectations.
- Pipeline and Future Prospects (07:07): The management discusses future business prospects, including ongoing bids in various sectors like oil and gas, petrochemicals, and infrastructure.
- Consulting Margins (08:20): An inquiry about consulting margins leads to a discussion on quarterly variations and expected change orders.
- International Initiatives (10:51): The management talks about increasing international initiatives, mentioning projects in Algeria, Nigeria, South America, and the UAE.
- Non-Oil and Gas Initiatives (12:34): Discussion on diversification into non-oil and gas sectors, focusing on decarbonization projects, including green hydrogen.
- Investments in Fertilizer and Refinery Projects (20:32): The call covers EIL’s investments in fertilizer and refinery projects, discussing returns and related work orders.
- Future Investment Plans (21:08): There’s a discussion about future investment plans, particularly in the context of the NRL expansion.
- Ordering Activity in International Markets (32:34): The management speaks about international business, order sizes, and the nature of these orders.
- Strategic Alliances (37:14): The call touches upon strategic alliances, particularly with Sunrise Group of Australia, and their role in emerging technologies like solar concentration.
- Opportunities in Decarbonization and Defense (39:02): The conversation shifts to opportunities in decarbonization, green initiatives, and the defense sector.
- Expectations for FY 25 (41:38): The management discusses expectations for FY 25, focusing on the cyclical nature of the business and project-oriented strategies.
- Coal Gasification Projects (43:03): There’s a discussion about coal gasification projects and collaborations with companies like Coal India and NLC.
- Closing Remarks (47:44): The call concludes with closing remarks and a thank you to the participants and the management team.
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