Engineers India Ltd Research ReportQ2FY21

Engineers India (EIL) standalone revenues for Q2FY21 were at | 683.4 crore down 5.6% YoY. Consultancy and turnkey (LSTK) segment contributed 51% and 49%, respectively. For Q2FY21, consultancy revenue de-grew 2.5% to | 345.2 crore YoY while turnkey revenue de-grew 8.5% to | 338.2 crore YoY owing to execution slowdown. Absolute EBITDA was at | 77.2 crore, down 27.8% YoY while overall EBITDA margin came in at 11.3%, contracting 350 bps vs. Q2FY20 mainly due to lower margins in turnkey segment. Consultancy & turnkey segments reported EBIT margins of 27% (vs. 27.4% in Q2FY20) and 1.9% (vs. 7.7% in Q2FY20), respectively. PAT was at | 92.7 crore, up 36.8% YoY mainly on account of deferred tax adjustments in base quarter. Other income declined 18.7%, YoY to | 53.3 crore. EIL’s board has approved the proposal to buyback ~6.97 crore shares representing 11.06% of total fully paid-up equity shares at a price of | 84/share for aggregate consideration not exceeding | 586.9 crore.