Ladies and gentlemen, good day and welcome to the Engineers India Limited Q3 FY 2025 earnings conference call hosted by DAM Capital Advisors. As a reminder, all participant lines will be in the listen-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 the touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors. Thank you, and over to you, ma'am. Thanks, Rajeeta. A warm welcome to everyone on the 3Q FY 2025 earnings call of Engineers India. We have the management today being represented by Mr. Sanjay Jindal, Director of Finance, Mr. Suvendu Padhi, Company Secretary and Investor Relations; Mr. R.P. Batra, Executive Director of Finance and Accounts and Investor Relations; Mr. Amanpreet Singh Chopra, Senior General Manager, C&MD Office and IR; Mr. Vivek Midha, Senior General Manager, Marketing, Business Development and Investor Relations; and Ms. Neha Narula, Senior Manager, Company Secretariat and IR. At this point, I'll hand over the floor to Mr. Jindal for his initial remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir. Thank you, Ms. Bhoomika. Good evening, everybody, a warm welcome to the earnings call of Q3 of financial year 2024-2025. We have declared results of quarter and nine-month ended December 2024 on February 10th, 2025. As regards to financial performance for these three months ended December 2024, the company has registered a turnover of INR 750 crore vis-à-vis INR 676 crore during the second quarter of the financial year 2024-2025, showing an increase of 11% in turnover. Turnover from the consultancy and engineering segment stood at INR 407 crore, and from the turnkey segment at INR 343 crore. Other income during the current quarter ended December 2024 is INR 37 crore, as compared to INR 53 crore during the second quarter of the current financial year. During the current quarter, the company has reported profit before tax of INR 118 crore and PAT of INR 88 crore, in comparison to INR 100 crore and INR 79 crore, respectively, during the second quarter of the current financial year, showing an increase of 18% in PBT and 11% in PAT. Further, profit from operations for this quarter ended December 2024 is INR 81 crore vis-à-vis INR 47 crore during the second quarter of the financial year 2024-2025, showing an increase of 73%. This resulted in operating margin increase to 11% in December 2024 quarter, from 7% in September 2024 quarter. In addition to that, EBITDA for the quarter ended December 2024 is INR 128 crore vis-à-vis INR 110 crore during the quarter ended September 2024, showing an increase of 16%. Notably, EPS for the quarter ended December 2024 is INR 1.57 vis-à-vis September 2024 quarter is INR 1.41. On a consolidated basis, profit after tax for the quarter end date December 2024 is INR 109 crore vis-à-vis INR 100 crore during the second quarter end date September 2024 of the financial year 2024-2025, showing an increase of 9%. The company has an all-time high order book of INR 11,353 crore, comprising under consultancy segment of INR 5,554 crore, and under LSTK segment of INR 5,799 crore as of December 31st, 2024. Thank you. Thank you, Bhoomika. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one now. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Hi. Good evening, sir, and thanks for the opportunity. My first question is on what is the status of the IOCL tender where we were L1? Can we expect the finalization of the tender in the coming months? Just to surprise. Which tender are you talking about? IOCL, I think one of the tenders we were L1, right? Last quarter we announced that we, I think we had mentioned we were L1 in IOCL tenders. Panipat? Sorry, Panipat, Paradip? Yeah, Paradip Petrochemical Complex. We are L1. We are L1, and one of these projects is basically they had two projects. One is the Paradip PMC-1 package, and another is package number two. In package number two and one, both of them we are L1. The PM package one has been awarded to us recently. I think last week it has been awarded to us, and package number two is expected to be awarded in the next couple of weeks. Understood, sir. The results will be reflected in the next, basically the next quarter, basically ending of this quarter. We will get the results of that. That's very helpful, sir. Second, has the BPCL floated a tender for its consultancy tender for its new refinery in Andhra Pradesh? Is there any progress out there? Tender, but I think it's not been slotted as of now. So we can expect in the coming quarter, right? This one? It may come. It may come. Usually, it will be initial studies, pre-project activities, and all those things, activities which is there. Later on, it could be the major tender will come, but not in this quarter itself. It should come somewhere in the next financial year, or towards the end of this quarter. Understood, sir. My last question is, how is the work on CPCL progressing? How are you booking revenues as of now? And do you expect the revenue booking to pick up in next fiscal year? CPCL, which project you are talking about? CPCL Nagapattinam? Expansion? I think the project is kind of on hold, kind of on hold because of the land issues. So we are yet to hear from them for further decision on the project from the IOCL side to CPCL side. Awesome. Okay, understood, sir. Thank you and all the best, sir. Thank you. Thank you. Participants who wishes to ask a question may press star and one now. The next question is from the line of Nishit Master from Axis Securities. Please go ahead. Sir, thank you for taking this question, and congratulations on a good set of numbers. Sir, just needed one clarification. There is an order which we've got, which is development of IIT Jammu Phase B. It's on a depository basis. Now, if you could just explain the difference between LSTK and depository basis, you know, it would be helpful. There is no difference in the depository and LSTK. It's almost the same philosophy. Almost the same philosophy, right? And the margin profile also would be similar? Almost similar, yes. Okay. Thank you, sir. Thank you so much. Thank you. Participants who wish to ask a question may press star and one now. The next question is from the line of Manish Ostwal from Nirmal Bang Securities. Please go ahead. Yes, sir. Thank you for the opportunity. I have a couple of questions on the company's performance. First question on the order inflow which we have received during the nine months is close to INR 7,000 crore compared to, which is almost 130% growth compared to the nine-month period of last year. So first is the current order inflow which we are getting, what is the margin profile on that? Can you explain? Because if I look at our mix of consultancy versus turnkey compared to December 2023, that has changed from 59% - 49% in terms of consultancy and turnkey moved from 41%- 51%. So that has implications to the blended margin profile of the company. So can you guide us what is the sustainable margin turnkey projects for our existing order book and the consultancy margin so that we can figure out blended margin look like for the current order book? Segment profit? I think you are talking about the segment profit in the EPCM job and LSTK project. In the EPCM job, we are having a segment profit of around 20%, and in the LSTK job, our segment profit is around 5%-6%. The current order book, what is the margin profile of the blended margin profile order books? Current order book INR 11,352 crore. At this moment, our current order book is INR 11,350 crore, and we have turnkey business of INR 5,800 crore, and balance is consultancy job. What is the time frame of executing this order book? Timeline? You are asking timeline? Yes, sir. Timeline of executing this current order book INR 11,352. These projects are bigger in size. Generally, they are being executed in three to four years. Unless there is some short job, which may be completed in one year also. Generally, bigger projects are completed in three to four years. And the kind of growth we have shown the current year in terms of order inflow, can we sustain this kind of growth in the coming period? Yeah, definitely. We are sure. We are targeting all these projects which are coming in India, and we are very sure we will be technical consultant of all the clients, favorite consultant of all the clients in the future also. Okay, sir. I have only one request. I was trying for the meeting from the CFO office, but still I'm not getting the response. So I request you to please revert to our mail so that we can understand the business much more detail and advise our client in this accordingly. Thank you. All right. Okay, we can follow. Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Ishita Lodha from SVAN Investment. Please go ahead. Hi, sir. Thank you for the opportunity. My question is with respect to the previous participant question with respect to the L1 package. So can you quantify the second package, the quantum of that order of the second package? Listen, the package, the PMC-2 is expected to be around INR 700 crore. Okay. And sir, in the previous conference call, you had said that the order book in consultancy segment is expected to reach about INR 8,000-INR 8,500 crore. So can you explain the pipeline we have in consultancy? What kind of orders are we talking about? Order book has already reached INR 11,000 crore. I'm talking about consultancy order book. So consultancy order book is currently INR 5,500 crore. Order book would be seen with respect to the various upcoming orders. We've assumed that this IOCL is going to be added in this financial year. Then we are waiting for a few more projects in the petrochemical segment. Let's hope for the best that next year we should be realizing those. There are various proposals that are in competitive mode, and we are waiting for it. So they are in the pipeline. So we anticipate those things to be realized soon. Apart from that, infrastructure is another segment which we have done wonderfully. So we are likely to get some opportunity right there too. You You must have seen the infrastructure has grown from under 25% - 44% in this segment. So we are getting a lot of assignments in the infrastructure segment also. So all those segments will be contributing in these reports. Okay. And in this quarter, we had reported an improvement in consultancy EBIT margin. So is this linked to the stage of execution of a particular project? Is there any one-off in this margin? Because we have been guiding for only 20% of a sustainable margin. So if you can throw some more light on this, it would be helpful. This quarter margin is from the routine business of EIL. As you know, EIL revenues are coming from the implementation of the project, which is cyclic in nature. This may be some more, and this may be more in this quarter, and this may be less in next quarter because it is always cyclic in nature, and increase in this quarter is only due to increase in normal business only from the implementation of projects only. There is no one-time item is included. Okay. Thank you. Thank Thank you, sir. Thank you. Participants, you may press star and one to ask a question now. The next question is from the line of Sanjay Shah from KSA Shares & Securities. Please go ahead. Hi. Thank you for the opportunity. Can you hear me? Yeah. I just wanted to check on what are the opportunities beyond the, I mean, we are predominantly a hydrocarbon-focused company. So are there opportunities beyond some of the conventional sectors into the newer sectors like nuclear or some of the others? I know you mentioned about nuclear as an opportunity in the past, but just wanted to try and see if that opportunity is opening up in the newer space. The opportunities are there, definitely. It's not only in the hydrocarbon segment. You know that we are focusing outside the hydrocarbon also, which includes the infrastructure, which includes the satellite sectors, which includes the sectors like metallurgy and non-ferrous metallurgy. We have been doing various projects in now the steel sector. We have got various assignments. We have basically made the entry into the steel segment and a lot of engineering assignments out there. At the same time, we are again working for the non-ferrous metallurgy segment like smelter and refining projects. We are targeting them, and we are getting a few assignments there. So this is one of the segments. Then we have the segment like coal gasification. We are waiting for the upcoming coal gasification projects, for which the government has given some approvals to the incentives for the upcoming coal gasification projects, which are there on the anvil. So we'll be targeting those. We are also working on the green hydrogen and green ammonia segment. We're already doing a few projects with NTPC, and then we'll be having the later part, like later implementation of those projects in the times to come. We are working with NTPC on the engineering assignments, which is purely a power sector. We are doing various structural stability studies for them. Similar kind of assignments are expected to come in times to come. At the same time, we are there in the infrastructure. Infrastructure, we have been doing pretty well. We have been doing with the data centers. We are going for the basically institutional campus. We are working the projects on OBE basis. In fact, we have started working projects on OBE basis as well as on the depository basis in the infrastructure segment. So all these segments are beyond the hydrocarbon, and we are contributing significantly. We'll be contributing significantly in our business apart from the oil and gas. But oil and gas is going to be the main market for us for business. So we are not only relying on the oil and gas. We are also working on the other segments. Thank you. That's really useful to know. And in light of this, do you have some kind of a two-year or a three-year or a 3-5 years growth map in terms of how much growth should, as an investor, we expect going ahead, just given your order book and the kind of visibility that you have in the pipeline? You must have seen the order book right now. It's INR 11,000 crore. At least we are trying to, we will be sustaining that much order book, and we'll be at least increasing that order book. So that is a significant growth in the last couple of years. We have been working for the last three, four years consistently. Management has put in a lot of focus on the new sectors, new areas, improvement of efficiency of the working productivity of the employees. All these segments, we have been focusing not only on the business, all the fronts, new technology initiatives, visibility of company as a brand in the market. You see that today EIL is visible everywhere on the maybe intranet or maybe internet or on the social media. Everywhere it's similar. So brand improvement is also there. At the same time, we are working on the efficiency of our products and targeting the new projects. We are very much competitive. We are getting very, despite being facing various challenges, being a Government of India company, but still we are getting the jobs on competition basis and very successfully getting those assignments. So those endeavors are there from all sides. Let's hope for the best. Thank you very much. Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Arvind Joshi from Bateleur Advisors. Please go ahead. Yeah, hi sir. Can you give us some updates on the West Coast Refinery, the progress, if any? West Coast Refinery, we do not know the future of it because we have been hearing like it's always published in the paper that it may not come. We might decide to go for two refineries at two different locations. So we don't see any future at this point of time for this refinery. It's all government decisions and political decisions. While it is taken, we'll get to know. Okay. And sir, any visibility on the new 2G ethanol plants and CBG plants that are there in the pipeline for us? Primarily, we are targeting the oil and gas projects. CBG plants are also on the anvil. We are looking for it, and we are doing some internal studies also on the CBG plants. So we're not clear at this point of time how many projects we are going to be having those in our team. We are targeting those, and let's see what we do in the future. Thank you. Thank you. Participants who wishes to ask a question may press star and one. Anyone who wishes to ask a question may press star and one now. The next question is from the line of Bhoomika Nair from DAM Capital. Please go ahead. Yes, sir. So I just wanted to understand, you know, while we are L1 in the IOCL, but you know, other Petchem projects which are there in the pipeline, whether be it in terms of other IOCL projects or BP, HP, or any others, if you can give some color on what is the refining capacity expansion planned by all the OMCs where there could possibly, you know, be some opportunities for us to look at, both in terms of refineries as also in terms of Petchem? In terms of, you know, that in terms of the Petchem, this Paradip project is expected to come. We've secured the phase I; it's been awarded to us. PMC-1 has been awarded to us, and PMC-2 is actually being awarded this month itself. That's one of the major projects which is coming on stream. Can you tell us? Heard about the upcoming petrochemical complex in Andhra Pradesh where the work has initial work, and they have allocated some INR 5,000 crore for the initial project activities. So that project is also on the anvil for the next year. There are a few studies which are already in place, which we are carrying out. These are for oil and chemical projects. One of them is for the private sector and two or three is for the government sector. Various areas, depending on how feasible these projects are, if they are viable, then they will be coming in the shorter term period because the feasibility studies are about to be completed, and next couple of months, they will be taking the decision. So let's hope for the best. These projects are there. There are four, five such kind of projects. These studies are on. At least two or three should realize, and two or three should be materialized in the times to come, in a year's time. So those could be some of the projects. There are certain refineries expansions. Existing refineries are also thinking of expanding like Bina Refinery has plans for expansion. 2G refineries also have certain plans for expansion. So let's hope for the best. These are there in the initial stages. With 10 times to come, they will be converted into the major projects as they are both clear. Okay. But any kind of, you know, if not in terms of rupees crore, in terms of, you know, possible refinery expansion, the conversation is ongoing, which you think we're ordering can possibly happen over the next two years. If you can talk about, you know, in terms of the capacity increase in terms of refinery or in terms of Petchem. Usually, there are two refineries who are thinking of expanding, thinking of going for the expansion in the times to come. So that could definitely happen within one year's time. The Bina Refinery and the Kochi Refinery, both of them would be expanding. And there are news, basically chatters are there in the news also that these are getting expanded apart from the petrochemical complex is going to be there. It's a grassroots complex. So that would be integrating the refinery as well as the petrochemical complex within the large refinery in Andhra Pradesh. So despite that, apart from that, oil and chemical projects are there. So those are also the refinery from petrochemical complex. As a standalone, refining capacity additions would be limited. Okay. And on Petchem side, I mean, apart from the BPCL and the IOCL ones? Those projects would be integrated with the refinery, and those would be the petrochemical complexes integrated with the refinery apart from the, in addition to the oil and gas, basically oil to chemical complexes. Okay. Wherein the refinery and petrochemical are all together within the one project. But focus of that plant is on the Petchem. Its maximum output is Petchem, but refinery is also there. So they will not be focusing on the transportation fuel more on the Petchem plant. Sure. Sure. The other aspect is on the international business. We had put up our offices in Abu Dhabi, etc. You've seen the order intake, you know, for the last two years being in the INR 500-INR 600 crore range, also in the same kind of broad range for the current year as well. You know, how do you see that scaling up? What is the pipeline like? Any, you know, large orders, you know, government to government, EXIM Bank related, anything which can possibly come up? Anything in the pipeline that you can talk about out there? With respect to the government to government, there are very limited number of, we don't see any major discussions happening because there's only one major investment by Government of India in Mongolia. Thereafter, we have not seen any major investment by government of India in any of these countries with respect to the oil and gas segment or any other major section. But definitely, with respect to the overseas business side, some of Abu Dhabi's office is doing pretty well. They are doing a lot of assignments, engineering assignments. They've been getting a lot of projects, engineering mid-sized competency projects from the ADNOC group of companies in the Offshore segment, in the Onshore oil and gas segment, the refinery and petrochemical segment. So that office is doing pretty well, and they are expected to grow well next year also because we have put in a lot of focus and a lot of impetus on this increasingly fast power. So all focus is there. Apart from them, so we are anticipating some minor projects may also come from the existing Nigeria segment, wherein they might be going for certain maintenance. The The existing client might go for the modification in the plant. They will be adding a few of the units there. So we have been talking to them. So some projects may come from there too. We are also doing one Petchem complex. So it's phase II, basically the implementation phase may come by the end of this year. So let us see. A lot of projects are there. We are bidding for various consultancy assignments in Nigeria quite aggressively. So some of these assignments are also expected to become. We have a few smaller consultancy assignments in Nigeria as of now, but we are anticipating more assignments from them. So these are some of the segments we are going for a targeted approach. In the east, also Kuwait, we have been doing well. We have got various assignments from the KNPC and the other oil companies there. So thereby means our consistent business. Because we have a consistent business for us. We have running agreements with the major oil refineries there. We get a lot of engineering assignments throughout the region. We can sustain them. The smaller engineering assignments, but we are continuously getting business from all these companies. So we're competitive there. Definitely on the Middle East too. Okay. Okay, so sir, I mean, in effect, what I'm trying to ask is, you know, the consultancy part of it, if you see, there has been a significant improvement in the order inflows in the current year. We are already at INR 3,000 crore+. We'll get some more orders in the fourth quarter. Can this run rate of, you know, INR 4,000-INR 5,000 crore of consultancy order intake be maintained, you know, given the pipeline that you're seeing for the next one or two years? Yes. It's not difficult to get that. For to maintain the similar kind of what we have today, should be able to achieve the same kind of business next year too. With the kind of focus we have shifted and the points we are making, we should be able to get it. Okay. So lastly, just one thing on, you know, the NRL investment we're doing, their expanding capacity. Now, as of date, what is our total investment in NRL, and what will be the likely increase that we will do because of their capital requirements? We have made INR 700 crore plus INR 135 crore with the additional investment. After that, we have still until INR 200 crore we already put there. There will be around INR 34-INR 35 crore in the end. INR 700 crore plus INR 135 crore, INR 835 crore will be a total investment in NRL? Yes. Yes. Okay. And so far, we've done some INR 700-INR 800 crore. So INR 25 crore is pending. Yes. Yes. Yes. Okay. Thank you. Okay. Thank you. Thank you. Participants who wishes to ask a question may press star and one now. Next question is from the line of Dhrushil Jhaveri from Canara Robeco. Please go ahead. Yeah. Hi sir. Thanks for the opportunity. My question is on consultancy execution. So what kind of revenue can we expect over FY 2026-2027 given the strong order that we are sitting on? There will be definitely growth in the next financial year, and we are expecting some big order in the current financial year and next financial year. Over a period of time, definitely there will be growth. Yes. I am interested. But But if you can give us some directional, I mean, how much execution improvement are you expecting next year over what we have seen in the current year? Mainly. Especially in consultancy? Around 36-40 months. So during the first year, the revenue recognition is around 5%-7%. And in the second and third year, the revenue recognition is around 35%. So going forward in the financial year 2026-2027, there will be a substantial increase in the revenue. We are expecting an increase in the revenue. Got it. Got it, sir. And just one last one. This overseas big project that I think we had talked about earlier on the consultancy side, again, I think this was Dangote. Is there any update on the expansion project and the status of us getting the order here? Dangote, they're not anticipating any major expansions at this point of time because at this point of time, they are focusing on stabilizing the refinery and increasing their production because it's running at the lesser capacity because they have certain crude shortages within the country itself. So they are trying to stabilize their refinery. Thereafter, in years' time, they'll be going for a lot of modifications in the existing plant. Like they will be adding certain units and trying to improve the product quality and all those kinds of revamps as well as modernizations to come. Almost maybe years' time, they might go for the Petchem. They have certain Petchem projects on the anvil, but not in this financial year. And probably by the end of next financial year, as soon as the refinery stabilizes and they have the financial condition to meet to invest those projects, so they will definitely go for it. We have recently visited and met them, and they have shown certain interest in that. So let's hope for the best. As soon as the refinery gets stabilized, we'll have more opportunities like this. Got it. So no other large order in the international, in the consultancy side that we are expecting, right? There in the Abu Dhabi segment, we are bidding for it. It's a fairly large segment. It's INR 30-INR 50 crore worth of businesses there. Many projects which we are targeting, it's mostly the FEED, EPCM, PMC projects are there. We are bidding for them, and those would be coming. Got it. So what kind of order inflows from international and consultancy can we expect? I mean, ballpark, I'm just asking sir. Around INR 40-INR 50 crore each. There will be many such projects, accumulated, many such projects. It will be mid-sized projects, 2-8 million accumulated, and they add to the good business for the year. Apart from that, there are certain projects. Major projects are also. EPCM projects are also in the bidding phase. Let's hope for the best because there's a lot of competition in that segment. We are trying for that. So we'll try and get those assignments. They are larger in size. Sure. Sure. Thank you. Thank you so much. Thank you. Participants who wish to ask a question, please press star and one. The next question is from the line of Varun Gupta from B&K Securities. Please go ahead. Good afternoon, sir. Thank you for the opportunity. I just need one clarity. Correct me if I'm wrong. Earlier in your previous phone calls, you had mentioned that for FY 2025, you are looking to do a turnover of around INR 3,500 crore. Given how we have performed in the first nine months, are we likely to maintain that guidance, or will there be any revision to that number? At this moment, we are working with our clients for some change orders. And till the time such change order finalizes, we are expecting to remain same with the turnover of the last year, around INR 3,200-INR 3,050 crore. And in case we are able to finalize our change order, then definitely we are going to increase the turnover for the next year. Okay. Got it, sir. That's all from my side. Okay. Thank you. Participants who wishes to ask a question, please press star and one. Anyone who wishes to ask a question, please press star and one. The next question is from the line of Bhoomika Nair from DAM Capital Advisors. Please go ahead. So just one small bookkeeping question on what is the cash on books right now at the end of 3Q? Cash is around INR 100 crore. Okay, sir. Okay. Okay. Understood. Fair point, sir. I think there are no more questions in the queue. Thank all the participants and particularly to the management for giving us an opportunity to host the call. Really appreciate it, sir, and wish you all the very best. Thank you very much. Okay. Thank you. Thank you. Thank you. Thank you. On behalf of DAM Capital Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect the line.