EIL Q4 net profit up 26%

By Manish Gupta

State-run project consultancy company Engineers India Ltd (EIL) on Friday posted a 25.7% rise in its standalone net profit to Rs 158.72 crore for the quarter ending March 2023 as against Rs 126.29 crore in the year-ago quarter.

The revenue from operations rose 7.5% to Rs 866.15 crore in Q4 FY23. The full year revenue from operations increased 14.4% to Rs 3,283.76 crore and net profit fell slightly to Rs 342.15 crore in FY23 from Rs 344.41 crore in FY22.

Speaking about the performance in FY23, EIL chairman and managing director Vartika Shukla said, “EIL had secured business worth around Rs 4,700 crore as against the order value of around Rs 1,650 crore in FY22.”

Mega project implementation in the oil and gas sector has been EIL’s core business and some of the mega projects in the sector is nearing completion, she said.

Vizag Refinery Modernisation Project (VRMP) of HPCL, HPCL Rajasthan Refinery project (HRRL), capacity expansion project of IOCL-Panipat, Cauvery Basin Refinery (CBR) project for CPCL with the combined capital outlay of around $20 billion are some of the recent testimonies of EIL’s mega project implementation in the domestic market, she noted.

“In the ongoing financial year, the company has already secured business worth around Rs 650 crore with a share of more than 30% from the international market,” she said.

The overall order book status of the company, however, as of March 31, 2023 stood at Rs 9,079 crore including go ahead of around Rs 1,600 crore out of which 9% of the order value is contributed by the private sector projects.

“The commissioning activities of Dangote Oil Refinery Project (DORC) in Nigeria having total capital outlay of almost $20 billion with highest single train refining capacity in the world has commenced on May 22, 2023,” she said.

Recently, Prime Ministers of India and Bangladesh jointly inaugurated the India-Bangladesh Friendship Pipeline on March 18, 2023. EIL provided consultancy services for this project.

“The company recently bagged another project worth around Rs 160 crore for a greenfield urea and ammonia complex in Africa. We have also progressed well with our ongoing engagement in Mongolia and Guyana. Strengthening our Abu Dhabi office has started fetching results as EIL bagged several projects from our clients in this part of the world,” Shukla said.

EIL has marked its footprints in the areas pertinent to energy transition such as energy efficiency improvement, biofuels, green hydrogen etc. One of the largest capacities biorefinery project in India for Assam Biorefinery Pvt Ltd (ABRPL), a joint venture of NRL, Fortum and Chempolis OY is already at the advanced stage of completion, she added.