Engineers India Limited (ENGINERSIN) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Engineers India Limited Q2 FY27 Earnings Conference Call, hosted by Dam Capital Advisors Limited. As a reminder, all participant lines will be in the lesson-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is now being recorded. I now hand the conference over to Mr. Krishan Gopal Mudra from DAM Capital Advisors Limited. Thank you, and over to you, sir.

Thank you, operator, and a very good evening to all of you. Thank you for joining in, and welcome to Engineers India 2Q F527 Earnings Conference Call. We have with us from the management team of Engineers India, being represented by Mr. Sanjay Jindal, who is the Director of Finance, Mr. Suvendu Paddi, who is the Company Secretary, and Mr. Vivek Mitter, the Chief General Manager. With that, I would now like to hand over the conference to the management for their opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir.

Thank you, Mr. Kirshan Gopalji. Good afternoon, everybody, and a warm welcome to all the investors who are attending the investor call. We have declared our financial results for the second quarter ended, 30th September 2026 today. Company's order book position has reached its all-time high and stands at Rs. 20,421 crore as on 30th September 2026 as compared to Rs. 14,424 crore as on 30th June 2026. Order inflow in year up to second quarter of financial year 26-27 stands at Rs 7,428. And on this standalone result, we have declared results of quarter and half year ended September 26 on 30th October 2026. As regard to financial performance, for the three-month ended, September 26th, the company has registered a turnover of Rs. 802 crore, Vijay Vijay, Vijay Vijay to Rs. 800 crore in the first quarter of financial year 26-27. Turnover from consistency and engineering segments stood at Rs. 594 crore and from the tunkey segment at Rs. 208 crore. During the current quarter ended, September 26, the company has recorded profit before tax of Rs 229 crore in comparison to 145 crore during the first quarter of financial year 26-27, showing an increase of around 58% in profit before tax and profit after tax of Rs 180 crore in comparison to 1.09 crore during the first quarter of 2026-27, showing an increase of 65% increase in fact. Notably, EPS for the quarter ended September 26, stood at Rs. 3.20 pesa, which is June 26, at Rs. 1.93, on the against the face value of Rs. 5 per share. Operating margin during the second quarter of financial year, 26-27, stood at Rs. 152 crore, that is 19%, which is 108, that is 14%, during the first quarter of 26-27. It means our operating margin has increased from 14 to 19% in the second quarter of current year. EBITDA including other income of company during second quarter 2026 stood at around Rs. 240 crore that is EBITDA margin 27% in comparison to 155 crore EBITDA margin 90% during the first quarter of 26-27. It means from the first quarter to second quarter, our EBITDA margin has increased from 19% to 27%. On the half-yearly front up to 30th September 2026, the company recorded profit before tax of Rs. 375 in comparison to Rs. 243 crore, And profit after tax of 288 crore against the Rs. 185 crore up to September 25, showing an increase of 54% in profit before tax and around 56% increase in tax. Operating margin for the first half-year of 26-27 stood at around 16% in comparison to 9% in the first half-year of 25-26. Thanks. EBITDA of the company for the first half-year ended September 26 stood at around Rs. 395 crore, EBITDA margin 23%, in comparison to Rs. 265 crore, EBITDA margin 14%. I will start again from the EBITDA. EBITDA including other income of the company for the first half-year ended 30th September 2026, stood at around 395 crore. VJV is 265 crore for the first half-year ended 30th September 2025. Our EBITDA margin have increased from 14% to 23% in the same case. In the first half year of 26-27, the company achieved turnover of Rs. 1,603 crore in comparison to 1,758 crore in the first half year of 25-26, with turnover from consultancy and engineering segment amounting to Rs. 193 crore, 1,093 crore, and 510 crore in 20-27. Notably, in the first half of 26-27, our revenue mix has been changed from 47% in consultancy segment and 53% in 20 segment in the first half year of financial year 25-26 to 68% in consultancy segment and 32% in 20 segment. The consultancy segment has higher margins as compared to 20 seconds. The company is maintaining a healthy earning per share in the first year of 26-27. The earning per share stood at Rs. 5.13 per share for the first half year ended September 26 in comparison to Rs. 3.29 per share for the first half ended 30 September 26. This is against the base value of rupees 5 per share. On the consolidated front, the company earned a profit of rupees 197 crore for the quarter ended 30th September 2026 in comparison to profit of 158 crore for the quarter ended 30th June 2026. For the half-year ended, September 26, the profit stood at 355 crore in comparison to profit of Rs. 149 crore for the first half-year ended 30th September 2020. Thank you.

And over to Christian Rupal.

Hello.

Yes, sir. You are audible.

Yeah. Okay. We can start question answer. Sure, sir.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.

Yes. Good afternoon, sir. And congratulations on a very, very good set of numbers. My first question is, was there any one-off in the consultancy segment? The margins are pretty, margins are 30% compared to our usual run rate of 23-24%.

Yeah, you are right, sir. For this second quarter, this is around 30%.

30 crores. Just 30 crores for...

30%.

The question is, sir, was it a one-off for anything we have booked for the past period in this quarter? Is that the reason why the concertation income is very high, or is it that everything is as usual?

No, sir. This time, we have changed the business list. In the last first half year, our consultancy segment was 47%. Execution was 47%. Now, this time, turn-off from the consultancy segment is 68%. And from the LFC segment, 32%. And since margins in the consultancy segments are higher, therefore, properties are also higher. And as such, there is no one-time item.

Is it fair to expect that it's 30%, most of it is sustainable going forward? Is the number which one should look at for the maybe going forward, given that the mix has changed?

Definitely, we will maintain our 24-25% segment profit in the consultancy segment on overall basis, yearly basis.

Understood. My second question is that, of course, the presentation has not been uploaded as of now. Is it possible to give us the breakup of order inflow for the quarter between the two segments?

It is uploaded, but I will tell you the figure. Our order inflow for the current first half is 7,428, and out of it, 5,762 is from concernancy segment, and balance, 1,666 crores from LSDK segment.

Understood, sir. Understood. So, my third question is, sir, given the fact that, of course, you have already, I think, down 7,400 crores, as you speak, right, for the order inflow. And if you remember correctly, I think we had guided for 8,000 crores order inflow. So, would you like to revise our target?

Definitely, sir, we will cross the figure of 8,000 crores. And you have to give us any new guidance, sir? No, no. We are putting all of us to cross the figure of 8,000 crores. I hope next time we will revise the guidance on the count of this, if required.

My last question is, sir, how is the pipeline developing in the Middle East? Are you seeing some recovery? I think the things are stabilizing now. Are you hopeful that we'll be able to book some order in this fiscal year?

I'm just responding to this. I'm just responding to this. Gentlemen, you know that the situation is not all right in the Middle East. Still, that situation is on. So, we'll have to be hopeful on this. Businesses, we are doing a little bit well, and we are progressing and bidding for the various jobs. In Saudi, we are still waiting because the situation is not good there, because the attacks are still there. So, let's hope for this. But, however, we have recovered this from the Africa side. So, let's see how it goes, because the situation is not normal in Middle East. At this point of time, we will have to wait for some more months.

Understood, sir. Understood, sir. Thank you. All the best. Thank you.

Thank you. The next question comes from the line of Sanchita Sood from Robo Capital. Please go ahead.

Yes, thank you for the opportunity. Sir, my first question was that what kind of revenue growth can we see for this financial year and FY28 as well, As well as some guidance that you could give on what kind of EBITDA margins we'll be doing these two years.

We are taking into consideration the current order book. We have already given that we'll be achieving a revenue of around 4,200 during the current financial year. And going forward, definitely we are taking into consideration the order book, the further growth of around 10%.

In the revenue side.

Okay, got it. And, sir, my second question is, what kind of order influence can we see in Edge 2 of this year and next year?

Yeah, I'm just responding to that. We have already secured, you have seen that this is 7,400 crores we have secured in this quarter. We have, in fact, certain more orders have been secured. As of today, we stand at 8,100 crores. As of today, we stand at 8,100 crores. So, let's hope that we'll achieve some of the more business out there. And we are working towards it. It's actually hard goal. We still have six months to go.

All right. Understood. Thank you. That's all from my end. Thank you.

A reminder for all the participants, in order to ask a question, you may press star and 1 on your touchtone telephone. A reminder for all the participants that in order to ask a question, you may press star and 1 on your touchtone telephone. The next question comes from the line of Dees Sanghavi from Dalal and Brocha's Rockbook in Private Limited. Please go ahead.

Yeah, thank you. Thank you so much for the question. And congratulations on a great set of numbers. So my first question would be that you had guided for 4,200 tours of revenue for FY27, right? Right. With a 55-45 split. Yeah, correct. So, that comes with a 55-45 split, right, turnkey, consultancy and turnkey on an average, on an approach basis. So, that comes out to almost 1,900 crores of revenue from turnkey. In the first two quarters...

More than 60% on overall basis in the overall basis.

More than 60%, is that right?

Around 60%.

Okay. And sir, just to follow up to that question, so why are the margins at 4.3% for turnkey? Is there any reason for that?

No, it is always flexible.

Because it generally is in the range of 6 to 7%, right? So that's why I'm asking.

5-7% are okay, but generally in the new projects, cost progress are not there. Therefore, profits are little, 4-5% of the time, but as the project gets momentum, the profit will answer a bit more.

Right. And sir, so as you had said that there are a lot of turnkey projects which will go, which will have faster execution in H2. So, is that still the case? Are you expecting the execution to ramp up in QH2?

Definitely, our execution in LSDK segment should ramp up, because in the first half, it is 32% from the LSDK segment, and we are expecting it should be around at least 40% from the LSDK segment.

Right. And sir, the second question would be, so it is on the nuclear segment. So just hypothetically taking a 10,000 crores nuclear project. So a significant portion of KPEX would be towards nuclear reactor and the main nuclear island, right? And currently, we have opportunities in BOP and environmental studies, if I'm not wrong. So, could you give us a broad sense of how much of the kind of like the project cost is addressable to EIL and like BOP and environmental studies?

No, it's like this.

I'm just responding to it. On the nuclear side, we know that there are a lot of opportunities are coming, but all of them are the initial stages. Like, they are in the study phases. Some of them are in the environmental assessment study. Some of them would be the initial phases of hindering. So, this phase would take some time to come because many of the project's location have still been finalized. So, we are working towards it. So, it will be a good amount. It will be a significant amount, but it will not be in this financial year. It will take some time from here, a year or so. Next financial year, we can see some good orders from there in this segment, because we are also establishing our own systems in-house also. We have created verticals to handle all these things and sprucing up our manpower with all the kind of trainings and experiences. So we are making them ready for all these jobs, and we are bidding for all the assignments also.

But sir, how much would, like, for, let's say, a total project?

No, no. It's very difficult to tell the figures at this point of time. Depending what kind of job is going to come and how much work we are going to come. It could be a detail engineering assignment, it could be a smaller assignment also. If you get a bigger assignment, then the value would be major. So, it's very difficult to tell at this point.

I just wanted to understand if EIL will only do like BOP and environmental studies or will there be a larger scope for the...

EIL will be doing the engineering services, which will be balance of plant engineering consultancy and something related to construction supervision also, kind of, engineering and supervision role, owner's engineer's role, I can say.

Right, okay, thank you. And the last question would be, are there any change orders or any provision rights that you are expecting for this fiscal or the next fiscal?

Definitely, we have lots of change orders which we are negotiating with our clients, and it is expected that all these change orders will be settled in this financial.

Yeah, okay. Thank you. I'll join back the key.

Thank you. The next question comes from the line of Prateek Dugarh from IntelSense. Please go ahead. Audible? Yes, sir, you're audible.

Thank you for the question. Congratulations to the management on a good set of numbers. Sir, actually, I wanted to ask about the consultancy division only. If you look at the specific margins for the consultancy division, what we have seen is that it has come at around 30%. There was this question by another participant also. So, is this a normal course of margin that we can expect going forward, or was there a one-off in this time?

First of all, in this quarter, there is no one-time payment or settlement, and on the half-yearly basis, it is 27.7%, and on overall basis, we are expecting that it will be settled around 25%. We are sure that we will maintain the figure of 25% in the consultancy sector because in the project revenues are always cycling. So on the conservative side, we are ensuring that we will maintain our traditional margin of 25. But definitely in this quarter, it is 30% without any one time.

Okay. And, sir, regarding specifics of the depository orders that we had got, so I think last FY26, the depository order execution had begun along with the Dengote order execution. So FY27 is where Dengote should ramp up and depository orders should peak. So with that mix and obviously our overseas consultancy order would also again sort of accelerate in FY27. So wouldn't these specific orders like add up to the margin and the guidance of 25% you are giving? Is it on the lower side or you are saying that 25% would be what one should expect and there's no upside to that?

Definitely, there is on the upside because we have lots of overseas orders which are under execution, but basically it depends on the cost progress of the project. And 25% is the minimum figure I have given on the conservative side because we are sitting on the half year results. And on the half year basis, it is around 28% is the first half figure. So, I am saying it will, we will definitely maintain our traditional figure of 25% and definitely this time this figure will be higher than the 25%, but exactly I cannot commit that it will be 30%. And sir, if I extend my

view to say a first half of FY28, where you know Dangote would sort of be peaking and And we would be having a higher run rate on the revenue side as well. So by H1 of FY28, do we see a meaningful inflection in the bottom line for the company?

Definitely our bottom line will be healthier, more and more healthier in the coming years because we are having order book of more than 20,000 and we will be yielding more and more revenue And our bottom line will be healthier in the coming years.

Okay, so, sir, depository orders that we have, what should be the margins on specifically on the depository orders? And if you can explain, like, why do we categorize this as a difference? I mean, why do we not take it as a consultancy order only? Why is it categorized differently?

In the depository segment, in the consultancy segment, only fees part is coming in the top line. But in the depository segment, all the plant and machinery cost and material cost is coming in the top line. It is just like LSDK business. So that's why in the depository Okay,

so once like the depository starts tapering off in H1 of F by 28, then I think margins would again sort of be better for that period because like the lower margin segment is coming off and DANGOTE would be peaking at that time.

We are keeping balance between the consultancy segment and the depository segment. In the consultancy segment, we are focusing about 60% to 65% and balance from the LSTK side. So, it is a balancing day. We are not leaving LSTK business totally.

Thank you, sir. Congratulations on saying that. Thank you.

Thank you. The next question comes from the line of Amit Anwani from PL Capital. Please go ahead.

Hi, sir. Thank you. First of all, congratulations for very good numbers.

Thank you, sir.

And the first question, sir, in terms of order pipeline again. So, this year we did a very commandable job. We are already there in terms of the guidance which we have given and we will be easily surpassing. And there was a major contribution to this from the overseas consultancy, especially the Danbo J orders, which we want. We just wanted to understand the order pipeline outside India, geography-wise. Are we looking for more large, lumpy orders in the pipeline in the next 12 to 18 months? And second, one should look for the order guidance for next year. Are we going to continue this ramp rate of 8,000 plus for next year or year after that?

Mr. Vivek, I mean I will answer.

Amit, Amit, it's like this. We are bidding for number of the projects and you have seen that something comes up in between. So it's very difficult to tell you that which order is going to come, but we are bidding for number of projects all across the world and various territories also and including India also. So, we are hopeful that it will be able to get more business out of it. As already told you on the call that we have already reached 3,100 crores.

Next year, naturally, it will remain at least 3,100

crores we will definitely achieve because we have been consistently maintaining almost in the same range. And if everything goes on, politically, everything remains the same and the market remains the same. Capex are invested, and we'll continue to grow and continue to improve our business opportunity.

Right. The second, in Middle East, we were in some long-term agreement with Ramkho and expecting some order. Any update on that? And what is the Middle East order?

No, at this point of time, it's always published. It's already published. The situation is not stable there. We have not a major order we have anticipated, but we are bidding for various contracts out there. So, if something comes up, we'll update you towards the end of this financial year. Sorry, end of this financial year, it'll be next quarter. By the time, hopefully, the thing should stabilize or the war should stop. So, as of now, there's a lot of issues there in the thousands.

All right. And lastly, in terms of guidance for next year, we said 10 plus percent. But I think the order wins are very strong. And is it, again, a conservative guidance for next financial years also? Right now, the conservative, we are going to improve that.

We are going to, maybe we'll improve it. It depends on the situation in a couple of months. Right.

And expectation is that the consultancy will still continue to be more than the turnkey. Okay.

Normally, it's always somewhere around 60%, 65%, and 50-40 ratio remains. So, it will always remain in that range. Sometimes, you get a big ticket once, then the consultancy portion becomes heavy, and then sometimes you get a less ticket, but it has always been in this range. Sometimes it is 60%, sometimes it is 50%. So, definitely, it will be in that range.

Lastly, on the other income, this other income number was higher this quarter at 65 crores. What contributed to that?

In the other income, there is a dividend from the NRL to the tune of 21 crores and another dividend of 11 crores from the CIL balances regular income. Income on our surplus funds, rental income, and some other missing income.

Understood.

And the ramas, yeah. Essentially there is increase on account of dividend from the CL and NRL.

And will that continue or how is the dividend looking like for the full year?

We are receiving dividend on continuous basis from the NRL and CL.

Okay, okay. Lastly, sir, Ramakundam, how's the situation? I can see the numbers there also has been better. So, outlook there would help. Thank you.

Definitely, Ramakundam is doing better. And in this quarter, we have got the profit of 20 crore. And in the first quarter, it was 42 crore. And total profit up to this period, half year, 63 crore. So, we are expecting more and more good news from the Rx.

Understood. Thank you, sir. Thank you so much.

Thank you. The next question comes from the line of P. Jha, an individual investor. Please go ahead.

Thank you. First of all, some extraordinary numbers. And I would like to understand the domestic possibilities, especially in coal gasification and in hydrogen. And in your 2G refinery, besides any other storage of crude, these, if you can throw lights, respectively, on them for this current year. Yes, sir,

with respect to the coal classification, after this government of India's initiative of additional $34,000, And this funding for this year graph funding, there are studies which are on this, and we are bidding for a couple of projects, major projects also. Let's see how it's realized, and really studies we are bidding, and some of the studies we are also carrying on, like one work we are carrying on for NTGC, so that's the current situation of it. So let's see, towards the end of this year, if the studies are completed, the studies are awarded, and then they go for the financial closure and go for the implementation of the project. So that's the current situation of vehicle transportation. Regarding hydrogen, in this case, nothing much we have at this point of time. So we're still looking for the good opportunity, and my early time day also at this point of time. There's no major significant work is there. However, we are implementing one CDG plant for our own. We are implementing it with our own investment. We are also thinking of having another CDG plant here and we are investing on our own in line with the government items. So, that's one of the opportunities there.

And how about crude storage?

You know that, after this, ISPL is going to invest in, is thinking of having more strategic storages, all across like MP and Dina, MP Dina, and there are other few, three more locations are there. So those will be opportunities available for us to get started, because ISPL, most of the projects have been done by strategic storages, and we are very good at strategic storages. So those will be there. Otherwise, other storages are part of the projects, major projects, so these are there. Whenever any major project comes, just brute storage and terminals always comes as a part of it. But as well as the strategic strategies, this is ISTRL projects around manuals which are published. So we'll be bidding for those.

Outstanding. And another very broad listing that for the domestic order book for the remaining part of the year, Or let's take the, during the next financial year also, what is the expected order book that you expect, domestically speaking, from all these segments, if you have any,

I can talk about the business intake at this point of time. And it is around 3,100 we are there, so we are going to add something more. The next year we are going to maintain it like this. And overall order book is around 20,000 crore, wherein almost 60,000 crore is almost 60 percent is from the overseas. And balance will be from the domestic, so around 40 percent.

So let us see.

Typically, it remains around 40, 50 percent we can be added from domestic market, if we maintain the same. Thank you.

As we're late on the portion, we have 75% from the consultancy sector. Yeah, this is good on the part of ER because we are at margin in the consultancy sector.

Naturally. Yeah, absolutely. Extraordinary, sir. Great feat achieved. All the best. Thank you.

Thank you. The next question comes from the line of Akshay Kolekar from DBPMS. Please go ahead.

Thank you for taking my question. I hope I am audible to you. My first question is on the 4,200 crore Dengote order. Given the ongoing court case in Kenya around the proposed refinery project, has there any impact on the project timeline or EIL scope of work? And also, has the work commenced on EIL mandate, is there any risk on execution of the order at this stage?

Just don't go by the news. The work is already on. We are working on the engineering side of it. And that is the contractor's, that is the owner's perspective and he is managing it and he will handle all the legal issues and all. So, as of now, we have not been biased on this, but we are working on this and engineering is on on this part.

Okay, thank you. And the next question on a order, basically, on a broad basis, what could be the approximately split between consultancy and a Tanki in FY28 order inflow? Should we expect a Tanki order inflow to stay range around 3,000 crore in the next year?

So, typically it remains, this year it is around 25 to 30 percent is from the LSTK and that is from the consultancy. Somewhere it generally remains, this is consultancy heavy, this order book is, the order info is being consultancy heavy. But typically it remains 60-40 is the normal rate. So, 60 percent consultancy and 40 percent LSTK. Generally it remains like this.

Anu, what about the order inflow per tanky? It will stay around 3,000 Gaurat?

No, you can see, if you have 8,000, it's around 8,000, then you can presume that around 30%, 40% from that.

Okay, okay, okay, cool. Anu, Anu, the next question is on operating margins. You have previously guarded around 15 to 16 percent EBITDA margin. So, are you confident on reaching this at the same level?

Yeah, we are sure to maintain our EBITDA margin because we are exhibiting more and more consultancy segments and margins are protected there.

Okay, good. Just a last question. Any update on like IOC and Pradeep phase 2 and also on BPC and Landra?

I feel part of the phase 2 is still to be decided by the client, because I think they are looking for the land, so as soon as they sort out the land, then the second phase will come, so we'll have to wait depending on how much. AP, finally, it is still in the license of selection and study phase, so let's see. Towards the end of this year, some tender or some system, they should come up with the final implementation plan for this.

Thank you. The next question comes from the line of Shubham Borade from ICICI Securities Private Limited. Please go ahead.

Hi, thanks for the opportunity and congratulations on a very well set of numbers.

So, my question is, how will the progress on execution for Dungote order is going on, the first one which we brought in January 26th. It's progressing well, and a lot of ordering has been done by the client and all. Our teams are also working on the exhaustive engineering is on at this point of time. Teams are deployed there on the engineering activities. So work is going in full blast.

Can we expect some number in percent if possible?

I don't have the percentage of progress at this point of time. We'll have to see. Because in this financial, it was awarded somewhere in January, and probably in this financial, we'll have to see. I don't have the percentage of progress of exactly at this point of time. Sure, sir. Sure, thanks.

The next question comes from the line of Anubhav Mukherjee from 3CN Capital. Please go ahead.

Hello.

Yes, sir.

Sir, thanks for the opportunity and congrats on very strong results. I joined a bit later, so this might have been covered, but if I look at the consultancy segment debit margin, it was 30% plus this quarter. So, is there any one-off or any, like, benefit from project closure?

Our segment profit from consultancy segment is 30%. It does not include any one-time item. It is from the, it is from the level of business.

I get that. And sir, typically, when we work on larger projects like the Dangote project, is the margin better for that dual like consultancy segment margin move up?

Definitely, with the Dangote project, our margins will move upside only, but the Dangote project is still picking momentum. So, definitely in the coming second half and in the next year, full reflection will be there on the proper side.

I am sure will it be possible to share like how much of the order book, consultancy order book of 20,000 code that we have will be like get executed over next two or three years?

Out of 20,000, over 75% is from the consultancy segment, and around 55% is from the overseas business, and these projects will be delivered between three to four years.

Okay, I'll get back in the chat. That's all. Thank you.

The next question comes from the line of Sanya Jain from Care PMS. Please go ahead.

Hi, thank you for the opportunity and congratulations on the good set of number. Just want to say clarity that the recent Degnotic project that we got for 4,000 crores, given it is a greenfield project, will this project still have the execution rate of 3 to 4 years?

Yes, ma'am.

Generally, domotically, no?

Domotip projects remain for four to five years.

Okay, got it. And I wanted to know a bit more on the competitive analysis. What to do in both the domestic and export market? What would we, can we assume, is our strike rate in different sectors and in both domestic and export market?

Can you repeat this question? I missed out on that question, please. Can you please do that?

Yeah, just wanted to understand a bit more on the competitive intensity in the industry. So, what would be a strike rate in both the domestic and export market?

It's very difficult to say what is the strike rate because, yeah, we are the leaders. We've beaten many companies in competition, all the mega jobs, we beat them in competition. And internationally also, there are a number of brands available. So, it all depends. It's very difficult to tell you in terms of percentage how much to get. Our target is to get each and every job which we've been.

Right.

Got it.

And just wanted to understand if there is a bit any update on the CPSC pay revision. Do we expect any increase for the labor costs in FY27 or FY28?

Yeah, right now, there is no commission for the pay revision. So, whenever it will come, definitely we will take care of that.

Do we expect it to come by FY28 or later?

Yeah, we cannot say right now. Basically, right now, there is no commission for that. So, we cannot say that when it will come. It's up to the government. Okay. Thank you.

Thank you. The next question comes from the line of Mayur Parkeria from Scriptbox Wealth Managers, Private Limited. Please go ahead.

Hello.

Am I audible?

Thank you for taking my question. And actually, I joined the call a little late because I was still believing, when I saw it, it was 4.30, I had late intimation about the revised timing. But anyway, sorry, there is a duplication, and I'm trying to understand more in detail the company. I wanted to understand that, assuming that if the global geopolitical situation settles down, let's say, it's assuming, so assuming theoretically it settles down tomorrow, would you say that from our core capabilities perspective on refineries and gas value chains, do you believe that the opportunities post this would increase for us, Or has it, or will it remain the same, or has it gone down relative to what it was in the last 4-5 months?

Naturally, opportunity would increase for us. When the market is unstable, the project's capacity investment is not coming, and capacity investment is stabilized. Then the opportunity will be stagnant. So, as soon as the market opens, more projects will get an option of bidding more, and more market tenders will be out. So, actually, it is going to increase for me, with this kind of experience. Because we have... Okay, so one minute... Yeah, tell me.

Okay. Sorry, sir. Sorry to interrupt. You can please finish. No, no, that's fine.

I have concluded my answer. You can go ahead.

So, is it only primarily because the fact that because of the disruption, the order, the tenders are not happening or is it also because of the fact that the current war situation has actually disrupted a lot of refining capacity and to that extent, there can be a meaningful jump in the opportunity over the next one year once the war situation settles down. And for a player like us with global capabilities and relationships, the potential can be much more. Is that also a parameter or is it just the fact that the current tenders are not coming?

No, it is like this. Opportunities somewhere would be going down and somewhere would be increasing. So the impact of the market is the impact of the business in Africa has increased. Just because of this, because there's an alternative market created, an alternative opportunity is available to some other manufacturers, to producers. So, he's setting up projects all around the world. So, that's an opportunity created somewhere else. At somewhere else, the opportunity has gone down because in the Middle East, no major effect is coming or probably taking stabilization. So, it is reduced, but it is a temporary phase. If everything goes on, then the opportunity will come out and we'll see because we will also be participating everywhere. Everybody is right now focused on getting the crude, and managing their internal resources. But later on, when everything is fine, then projects and capex investments will come. India, we have not seen any major impact there. Any project has to come, it is coming. There is no visual project impact on this.

Sir, in the earlier call or answer, did you mention that we were looking at around 8000 crores of annual order? Was that, because in one of the answers you mentioned about 8,000 crore, I was just trying to understand. Is that, was that your number?

We had always told that we will be in the range of 7,800, 7,400, last year's total we will try to match. So we are meeting this year also, and we have already crossed that, almost reached that order, the inflow projection. So we are hopeful, it will be.

So, sir, will it be fair to say, will it be also fair to say that despite so much of disruption going on, we are in a position to get this outlook or we are, you know, our turnovers are much lower current revenue flow to the, from the order book. So, we have already reached 20,000 crore and we are talking of annual inflows of 8,000. In a normal situation, once this settles down, will it be fair to say that this number can theoretically or in your best guess estimate, this can actually materially go up as, you know, is a fair way to look at or you believe that our target would be only in the region of 8 to 10, 8,000 crore? That's how one should look at it.

We will always be optimistic of having the higher number. We will always be optimistic. But to stabilize ourselves at this point of time, the way we look at it, it is the projection we have given. But we are always trying to improve on that. And 10, 15%, 15%, we are definitely going to increase from the existing target, if everything goes fine. Our objective would be to get more, as more as we can do.

Great. You know, our capabilities which have increased in other segments, which helps us to diversify and open up newer opportunities which can come in over the next two years, three years, not over the next 10 years, but over two, three years, based on what capability enhancements we have done anything, any specific things you can put to highlight because I have missed that in the previous readings of mine. So, can you just highlight that which can be a potential in the next two, three years for us?

Definitely. It's like this. It is like this. One has to continuously grow. So earlier Lull period you were talking about, it was because of some market assignments were also on there. The market was also stagnant and not many projects were there. And every company has that kind of phase from time to time. That was the earlier phase. So we have also started strengthening ourselves. We have seen the kind of diversification we have done. We have not only dependent on the hydrocarbon fuel or across the sectors. We are into infrastructure, we are into ferrets, non-ferrets, we are into now strategic storages, we are into going into fertilizer. You have seen all these new segments we have added. Today, infrastructure contributes to my order and so around 20-25%. In between, it was around 40%. So, the hydrocarbon, it is definitely the core market for me, but I have also diversified into these segments. And we have also gone into the fertilizer. We have seen that a lot of fertilizer projects we have gotten in the Middle East. As well as in India, also, we are doing various projects. So, we are also upgrading ourselves. At the same time, we are training. We are improving the training of our people. Right now, we are focusing on the new segments like nuclear. There are opportunities shown in the market, opportunities there in the market with respect to the nuclear. So, we are training our people and making them ready. So, it's always continuous augmentation depending on what kind of opportunities are available in the market. So, every company has to improve upon itself, improving the productivity of its employees. So, all those factors we are working on, and that has given us the results. So, hopefully, it should be better now.

Okay, sir. Sir, I'll come back in the future. Thank you so much. Wish you all the best. And a great set of margin performance. Thank you. Thank you.

The next question comes from the line of Anubhav Mukherjee from Precyon Capital. Please go ahead.

Sorry, sir, again, like, I also joined at 4.30 because somehow the meeting was, like, showing up at 4.30 on the calendar. So, if you could share, like, what are some of the large domestic consultancy orders that you are expecting in the next one year or so? If you haven't already covered that, if you can take us through that, that would be very helpful.

No, it's a guest. You are already aware that there is an AP refinery which is coming. So, we'll be targeting that one. Paradeep is on the angle. There's a Facebook contract will be there. There are various minor revamped projects of DPCL and other refinities is there. Then there is an opportunity for the strategic storages we are targeting there. We are working in the non-service segment. We are targeting some opportunities out there because there are some companies are thinking of putting up a maintenance filter and all. So all these segments we are working, infrastructure, there is a lot of investment out there. So we are working towards it. We have recently got a data center project on the data center for the clients power grid. So these opportunities are there. We are trying and we are getting the assignments also so that we are working towards it.

Uh, thanks. And, uh, and also, uh, for like, uh, overseas consulting, uh, projects, how do, uh, uh, like margin for those projects compared to like domestic, like, uh, uh, are those typically higher margin projects or in line with the domestic consulting projects?

Our consultancy margins remain the same, generally remains the same. We don't overcharge anyone, it always remains the same segment, almost in the premiums, somewhere we make it good.

Thank you. The next question comes from the line of Darshan Shah from Multi-Act PMS. Please go ahead.

Hello. Am I audible?

Yes, sir.

Yeah. So, just one question.

So, based on this $8,100 crore order inflow that we have till date, so around incremental $670 crores of order inflow,

what would be the split between consultancy and turnkey?

Would it be largely consultancy segment?

Yes, it is typically more of consultancy.

Okay, okay. And one more question on the credit terms, right? So, for the international consultancy segment,

what are our credit terms, specifically, let's say, for Africa?

Credit terms, what is it, what do you like to understand in credit terms? Payment terms? No, in terms.

Yes, yes, yes.

Payment terms are fine. They are always progress linked with respect to the over-engineering progress as well as the project progress.

They are a mix of others. Yeah, no, in terms of, is there a letter of credit or, you know, just wanted to understand?

No, no, it's like this. Not necessarily you need a letter of credit for that. Most of the clients are known in the Middle East and also, they are recruited right. Default on the payments and all.

No, specifically, I'm checking on Africa.

In Africa, we have been working with this client for a long time, so we know the stability And before entering into any of the agreements, we also do our due diligence. That is paying capability, we always check. We don't work with the unknown clients. We verify their potential.

Sure. Sure. Okay. Thank you.

Thank you. The next question comes from the line of Deep Sangri from Detail and Brokast of Broking Private Limited. Please go ahead.

Yeah, thank you so much for the question again.

So my question was regarding this. Out of the 8,100 crore orders and flows till date, how much would be from the Middle East from this?

Oh, 8,100 crore, Middle East would be a little bit limited, something around 500 crores or so, 500 crores.

So, we haven't received any orders in Q2, right? Because I think in Q1 also, it was the same kind of Korean.

We have got smaller orders, we have got smaller orders, right?

Right. And, uh, just a follow up to that. So MB, sir, uh, and the agent has said that, uh, there's, uh, in the kind of two to three year of, uh, like range, there's a, uh, almost around a million dollars of opportunity in the Middle East, uh, regarding, uh, strategic

storage projects and all, uh, pipeline projects as well.

So are we bidding, like, are we bidding for these projects there? And, uh, if there will be any projects, we will definitely bid, right?

I don't know. Definitely, there's a lot of opportunities out there, provided all that market stabilizes. There's a number of tenders we are bidding for various CCC contractors. Hopefully, let's see. Because these are long decision bidding cycles. So, they come in time to come. We'll let you know. But the opportunities are there. Provided everything stabilizes.

Sure. And first, there's the last question from my side. I know one of the people have asked this before, but if you can please guide any, you know, in a broad range as well, they'll be fine. Because we generally aim for 8,000 crores per year of order and close, right? So if you can guide something for the next fiscal, fiscal 28, it will be very great. Thank you.

Next financial year, it will be at least minimum 8,100 crores, 8,000 crores or more. Okay, perfect.

Thank you.

Thank you so much, sir. Thank you. And again, a great set of numbers.

Thank you so much.

Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to the management for closing comments. Over to you, sir.

Thank you. Thank you very much. Thank you very much.

Thank you so much.

Hope we could meet the expectation of our investors. Thank you, everyone. Bye-bye.

Thank you. On behalf of Engineers India Limited and Dam Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.