Tag Engineering

Engineers India Limited
Engineers India Limited (EIL) Q3 Results: 71.63% Profit Surge, 3% Share Price Dip & Future Outlook

Business and Industry Overview: 

Engineers India Limited (EIL) is an Indian public sector technology, engineering consultancy, and technology licensing company. It was established on March 15, 1965, as a private limited company under the name Engineers India Private Limited under a memorandum of agreement dated June 27, 1964, between the Government of India and Bechtel International Corporation. In May 1967, EIL became a wholly-owned Government of India (GoI) enterprise. It provides indigenous technology solutions across hydrocarbon projects. Over the years, it had additional diversification into synergic sectors like non-ferrous metallurgy, infrastructure, water and wastewater management, and fertilizers. EIL is headquartered at Bhikaji Cama Place, New Delhi. EIL also has an R&D complex at Gurgaon, a branch office in Mumbai, regional offices at Kolkata, Chennai, and Vadodara, inspection offices at all major equipment manufacturing locations in India, and overseas offices in London (England), Milan (Italy), Shanghai (China), Abu Dhabi (UAE). 

Latest Stock News:

With the announcement of Q3 Results, the net profit of Engineers India rose 71.63% to Rs 108.73 crore in the quarter ended December 2024 as against Rs 63.35 crore during the previous quarter ended December 2023. The sales of the company have declined by 11.88% to Rs 764.59 crore in the quarter ended December 2024 as against Rs 867.64 crore during the previous quarter ended December 2023.  

On 3 February the company announced that it had successfully bagged a project worth 1200 Cr as the project management consultant for the development of an academic institute of national importance.  

Segmental information:
The major business areas wherein EIL provides its engineering consultancy services are: Petroleum Refining, Petrochemicals, Chemicals & Fertilizers, Crude, Petroleum products & Gas Pipelines, Onshore & Offshore Oil & Gas, Terminals & Storage Underground crude oil storages, Mining & Metallurgy, Infrastructure & Urban Development, Biorefinery, Gas Processing Station, Nuclear Power, & Revamp of existing plants in above category. EIL has also ventured into various unconventional energy resource projects like solar, 2G ethanol, bio-fuel, etc. EIL provides a wide range of engineering consultancy and EPC services to its clients which include:  

  • Process Design 
  • Engineering 
  • Supply Chain Management 
  • Project Management 
  • Construction Management 
  • Specialized services like Heat & Mass Transfer, Plant Operation & Safety Management, Specialist Materials & Maintenance services, Environment Engineering 

Subsidiary Information:

EIL has a wholly-owned subsidiary Certification Engineers International Limited (CEIL) & also has set up a joint venture company namely Ramagundam Fertilizers and Chemicals Limited (RFCL) to enhance its presence in the fertilizers sector. 

Certification Engineers International Ltd.: Certification Engineers International Ltd. (CEIL) is a wholly owned subsidiary of EIL providing services related to Certification, Re-certification, safety audit, and HSE management systems for offshore and onshore oil & gas facilities. It also undertakes Third Party Inspection of equipment and installations in the Hydrocarbon and other quality-sensitive sectors of the Industry. Over the years, CEIL has emerged as one of the leading certification and verification Agencies for offshore process platforms, well platforms, submarine pipelines, and single buoy mooring systems. The Company promotes safety, quality, and reliability throughout the design and operating life of all types of equipment, structures, pressure vessels, pipelines & rotating machinery. The worldwide services cover all types of capital goods and equipment, during manufacture and erection stages for oil, gas & general engineering sectors. 

Ramagundam Fertilizers and Chemicals Limited (RFCL):  

For setting up a gas-based urea plant of capacity 3850 TPD, EIL, National Fertilizers Limited (NFL), and Fertilizer Corporation of India (FCIL), have incorporated RFCL as a Joint Venture Company at Ramagundam in the Karimnagar district of Telangana. NFL & EIL will each have 26% equity in the JV Company. EIL has been retained as a Project Management Consultant for project execution in EPCM mode. The Project completion schedule to commission the plant is 36 months. NFL is a reputed player in the fertilizer sector and their expertise would be utilized for operating the plant as well as for marketing the products. The plant is being built on the existing land of FCIL. 

Q3 Highlights:

  • Engineers India’s consolidated net profit rose 71.63% in the December 2024 quarter 
  • Net Sales at Rs 750.16 crore in December 2024 down 12.4% from Rs. 856.33 crore in December 2023. 
  • Quarterly Net Profit at Rs. 88.10 crore in December 2024 up 75.42% from Rs. 50.22 crore in December 2023. 
  • EBITDA stands at Rs. 128.21 crore in December 2024 up 66.36% from Rs. 77.07 crore in December 2023. 

Financial Summary:

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 868.00 765.00 3,330 3,281 
Expenses 818 667 3,020 2,982 
EBITDA 77.07 128.21 475.00 518.00 
OPM 6% 13% 9% 9% 
Other Income 30 38 164 219 
Net Profit 63.00 109.00 346 445 
NPM 7.26 14.25 10.39 13.56 
EPS 1.13 1.93 6.16 7.92 
L&T Q3 FY25 Results
L&T Q3 FY25 Results: Net Profit Rises 14%, Misses Street Estimates and Strong Order Book

Larsen & Toubro Ltd: Overview 

Larsen & Toubro Ltd. (L&T) is one of India’s largest engineering, procurement, and construction (EPC) companies, with a diversified portfolio spanning infrastructure, hydrocarbon, power, defense, and technology services. The company has a strong presence in domestic and international markets, particularly in the Middle East, Africa, and South Asia. The Indian government’s focus on infrastructure development, including roads, railways, smart cities, and renewable energy, provides significant growth opportunities for L&T. The company is also benefiting from rising investments in energy transition, water management, and digital transformation. However, challenges such as global supply chain disruptions, rising commodity prices, and geopolitical uncertainties may impact operational efficiencies and profitability. L&T operates in power transmission, distribution, and heavy engineering solutions, catering to sectors such as nuclear energy, aerospace, and defense. With India investing ₹111 lakh crore under the National Infrastructure Pipeline, construction and engineering firms like L&T are set to see strong demand. The company manufactures critical components for nuclear reactors, thermal power plants, and space missions, positioning itself as a key player in India’s self-reliance initiatives in defense and energy security. The company benefits from India’s rapid urbanization, industrial growth, and government initiatives focused on infrastructure development, digital transformation, and sustainability. 

Latest Stock News 

Larsen & Toubro Ltd. achieved its highest-ever order inflow in a quarter, driven by large orders across Infrastructure, Energy, and Hi-Tech Manufacturing segments. International orders contributed 42% of the December 2024 order book, while the company maintains a robust order prospects pipeline of ₹5.5 trillion in the near term, with domestic opportunities constituting 59%. Revenue growth was fueled by strong execution momentum in Infrastructure (15% YoY), Hydrocarbon (54% YoY), and Precision Engineering & Systems (34% YoY). The increase in MCO expenses reflects higher activity levels and revenue mix, particularly from P&M revenue. Staff costs rose due to resource expansion and salary hikes, while SG&A variations were linked to the execution ramp-up. EBITDA margins reflected the revenue mix and lower operating leverage in the IT&TS segment. Finance costs declined due to lower borrowing levels and rates, while depreciation increased due to higher P&M-related capex and new premises capitalization in LTIMindtree. Other income was influenced by investment levels and yields earned. The reported PAT growth was a result of increased business activity and improved treasury operations. In the Infrastructure segment, international order momentum remained strong, with a near-term prospect pipeline of ₹4.0 trillion. Execution remained robust, backed by a large order book and stable margins. The Manufacturing segment saw strong execution in Precision Engineering & Systems (PES), while revenue in Heavy Engineering was subdued due to jobs in the early stages. However, execution cost savings in Heavy Engineering aided margin improvement. In IT services, LTIMindtree’s revenue growth was led by the Technology, Media & Communications, and BFSI segments. LTTS saw growth in its Tech and Sustainability verticals. However, segment margins declined due to salary hikes and forex losses in both LTIMindtree and LTTS. 

Business Segments

  • Infrastructure: It comprises engineering and construction of buildings and factories, transportation infra, heavy civil infra, power transmission & distribution, water & effluent treatment, smart world & comm. projects and metallurgical & material handling systems. This is the core business of the company. Major projects include high-speed rail corridors, metro projects in key Indian cities, and international projects in the UAE and Saudi Arabia. 
  • Coal Supply and Distribution: It comprises complete EPC solutions for the global oil & gas industry from design through detailed engineering, fabrication, procurement, project management, construction, installation, and commissioning. The segment has secured significant contracts in the Middle East and Africa, reinforcing its international presence. 
  • Financial Services: This business primarily comprises rural finance, housing finance, wholesale finance, mutual fund, and wealth management. The business is controlled by the company’s subsidiary L&T Finance Holdings Ltd. With India’s economic growth boosting credit demand, L&T Finance is well-positioned for steady growth despite regulatory challenges and interest rate fluctuations. 
  • Defence Engineering: This segment comprises design, development, serial production, and life-support of equipment, systems, and platforms for defense and aerospace sectors; and the design, construction, and repair/ refit of defense vessels. The company has been active in the defense and strategic sector since the mid-80s. 

Subsidiary Information

  • L&T Infotech (LTI): LTI is a global technology consulting and IT services provider, specializing in cloud computing, data analytics, and automation. It has a strong client base across banking, financial services, manufacturing, and healthcare, contributing significantly to L&T’s digital transformation initiatives. 
  • L&T Construction: This subsidiary is a key player in India’s infrastructure sector, executing large-scale projects in transportation, water management, and smart cities. It is engaged in metro rail construction, high-speed rail, and expressways, enhancing urban mobility and connectivity. 
  • L&T Hydrocarbon Engineering (LTHE): LTHE focuses on the hydrocarbon sector, offering engineering and construction services for refineries, petrochemicals, and oil & gas projects. It has a strong presence in the Middle East and has secured contracts for offshore platforms and onshore processing units. 
  • L&T Finance Holdings: This subsidiary provides retail and corporate financing solutions, including home loans, vehicle finance, and infrastructure funding. It is streamlining its operations to focus on high-growth areas such as renewable energy financing and micro-lending. 
  • L&T Heavy Engineering: L&T Heavy Engineering manufactures specialized equipment for nuclear power, defense, aerospace, and industrial applications. It is a key supplier to India’s space and defense programs, providing critical components for missile systems, submarines, and space exploration missions. 

Q3 FY25 Earnings 

  • Revenue of ₹64668 crore in Q3 FY25 up by 17.3% YoY from ₹55128 crore in Q3 FY24.  
  • EBITDA of ₹7898 crore in this quarter at a margin of 12% compared to 13% in Q3 FY24. 
  • Profit of ₹3974 crore in this quarter compared to a ₹3593 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 55128 64668 183341 221113 
Expenses 47929 56770 156175 191248 
EBITDA 7199 7898 27166 29865 
OPM 13% 12% 15% 14% 
Other Income 838 968 2891 3847 
Net Profit 3593 3974 12531 15547 
NPM 6.5% 6.1% 6.8% 7.1% 
EPS 21.4 24.4 74.5 95