Engineers India (NSE:ENGINERSIN) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Engineers India Limited Q2 FY 'twenty seven Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. 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 FY 'twenty seven 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. Svendu Patti, who is the Company Secretary and Mr. Vivek Mitter, the Chief General Manager.

1:08 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 and A session. Thank you, and over to you, sir. Thank you, Mr. Christian 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 09/30/2026 today. Company's order book position has reached its all time high and stands at Rs. 20,421 crore as on 09/30/2026 as compared to Rs. 14,424 crore as on 06/30/2026.

1:58 Order inflow in year up to second quarter of financial year twenty six-twenty seven stands at INR7428 crores. And on this stand alone results, we have declared results of quarter and half year ended September 26 on 10/30/2026 As regard to financial performance for the three months ended September 26, the company has registered a turnover of INR $80.02 crore, Vijay reached Vijay, INR 800 crore in the first quarter of financial year twenty six-twenty seven. Turnout from Consultancy and Engineering segments stood at $5.94 crore and from the Tanki segment at INR $20.08 crore.

2:51 During the quarter current quarter ended September 26, the company has recorded profit before tax of INR $2.29 crore in comparison to Rs. 145 crore during the first quarter of financial year twenty six-twenty seven, showing an increase of around 58% in profit before tax and profit after tax of INR 180 crore in comparison to INR 109 crore during the first quarter of twenty twenty six-twenty seven, showing an increase of 65% increase in fact. Notably, EPS for the quarter ended September 26 stood at INR 3.20, which averaged June 26 at Rs. 1.93 on the against the face value of Rs.

3:46 5 per share. Operating margin during the second quarter of financial year twenty six-twenty seven stood at INR 152 crore, that is 19%, which averaged 108, that is 14% during the first quarter of 'twenty six, 'twenty seven. It means our operating margin have increased from 14% to 19% in the second quarter of current year. EBITDA, including other income of company during second quarter twenty twenty six stood at around INR $2.40 crore, that is EBITDA margin 27 in comparison to 155 crore EBITDA margin 19% during the first quarter of twenty twenty six, twenty twenty seven.

4:37 It means in the from the first quarter to second quarter, our EBITDA margin have increased from 19% to 27%. On the half yearly front, up to 09/30/2026, the company recorded profit before tax of INR $3.75 in comparison to rupees $2.43 crore and profit after tax of $2.88 crore against the rupees 185 crore up to September 25, showing an increase of 54% in profit before tax and around 56% increase in price.

5:27 Operating margin for the first half year of INR 26.27 at around 16% in comparison to 9% in the first half year of twenty five-twenty six. EBITDA of the company for the first half year ended September 26 stood at around rupees 395 crore. EBITDA margin, 23% in comparison to rupees 265 crore. EBITDA margin, 14%. Please. I will start again from the EBITDA. EBITDA including other income of the company for the first half year ended 09/30/2026 to date around 395 crore.

6:15 We gave INR $2.65 crore for the first half year ended 09/30/2025. Our EBITDA margin has increased from 14% to 23% in the same period. In the first half year of 'twenty six, 'twenty seven, the company achieved INR $160.03 crore in comparison to INR $17.58 crore in the first half year of 'twenty five, 'twenty six, with turnout from Consultancy and Engineering segment amounting to INR 1 and 93 INR $10.93 crore and INR $5.10 crore in 20 segment. Notably in the first half of twenty twenty six-twenty twenty seven, our revenue mix has been changed from 47% in consultancy segment and 53 in 2020 segment in the first half year of financial year twenty five-twenty six to 68% in consultancy segment and 32% in 20 segment.

7:18 The consultancy segment has higher margin as compared to 20 segment. The company is maintaining a healthy earning per share in the first year of twenty six-twenty seven. The earnings per share stood at INR 5.13 per share for the first half year ended September 26 in comparison to 3 rupees 29 per share for the first half ended 09/30/2025. This is against the face value of rupees 5 per share. On the consolidated front, the company earned a profit of rupees 197 crore for the quarter ended 09/30/2026 in comparison to profit of 158 crores for the quarter ended 06/30/2026.

8:12 For the half year ended September 26, the profit stood at 355 crores in comparison to profit of INR 149 crore for the first half year ended 09/30/2020. Thank you, and over to Christian Bhopal. Hello? Yes, sir. You're audible. Yeah. Okay. Now we can start question and answer. Sure, sir.

8:57 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 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?

9:42 The margins are pretty... The margins are 30% compared to our usual run rate of 23%, 24%. Yes. You are right, sir. For this second quarter, this is around 30%. 30 crores. So you've adjusted INR 30 crores for 30%. 30 My question is, why is there a one off for the everything we have booked for the past period in this quarter? Is that the reason why the concentration income is very high? Or is it that everything is all Everything is as is usual? No, sir. This time, we have changed changed the business mix. In the last first half year, our consultancy segment was 47%.

10:30 Execution was 47%. Now this time, not from the consultancy segment is 68%. And from the LFT segment, it's 32%. And since margins in the consultancy segments are higher, therefore, are also higher. And as of there is no onetime item. Is it fair to expect that this 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, sir, of course, the presentation has not been uploaded as of now.

11:21 Is it possible to give us the breakup of all the 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 7,004 and 28 and out of it, INR 5,762 crores is from Conservative segment and balance INR $16.66 crore is from LSTK segment. Understood, sir. Understood. So my third question, sir, given the fact that, of course, you have already, I think, around 7,400 crore as you speak, right, for the order inflow. And if I remember correctly, I think we had guided for INR 8,000 crore order inflow.

12:11 So would you like to revise our target Definitely, sir, we will cross the figure of INR 8,000 crore. And they have given us a new guidance? No, no. We are putting all of first to cross the figure of INR 8,000 crore. Hope next time we will revise the guidance on the count of this, if required. My last question, sir, how is the pipeline developing in The Middle East? Are you seeing some recovery? I think the things are stabilizing Are you hopeful that we'll able to book some order inflow in this fiscal year? But I will I'm just responding to this. I'm just responding to this. And, you know that the situation is not alright in in The Middle East. Till 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. We probably are still waiting because the situation is not good there because the attacks are still there. So let's hope for this.

13:18 But however, we have we have recovered this from the Africa side. So let's let's see how it goes because the situation is not normal in Middle East at this point of time. We'll 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 Sanjeetah Sood from Robo Capital. Please go ahead. So my first question was that what kind of revenue growth can we see for this financial year and FY 'twenty eight as well as well as some guidance that you could give on what kind of EBITDA margins we'll be doing these two years? 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.

14:28 Okay. Got it. And sir, my second question is what kind of order inflows can we see in H2 of this year and next year? Mister, yeah. I'm just responding to, sir. 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 had been received. As of today, we stand at 8,100 crores. As of today, we stand at 8,100 crores. So let's let's hopeful that we'll achieve some of the more business out there. And we are working towards it. Let's see our goal. We still have six months to go. Alright. Understood. Thank you. That's all from my end. Thank you. A reminder for all the participant, in order to ask a question, you may press star and one on your touch tone telephone.

15:26 The next question comes from the line of Deep Sanghavi from Dalal and Brochas Rockbroken 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 crores of revenue for FY '27, right, With the fifty five forty five split. $424,300? Yeah. Correct. So that come with the 55 to 45 split. Right? Turnkey... Consultants and then key on an average on a prox basis. So that comes out to almost 1,900 crores of revenue from Turnkey. In the first two quarters This time, I did consultancy segment is more and LSTK segment is lower because most of the big ticket project of LSTK segment is already over and new projects are... And new projects have been started and we... It will take some time to get full time... Full revenue from these LSTK segment.

16:31 So in the current year, we expect that consultancy segment will be more. It will be around more than 50% on overall basis in the More than 60%. Is that right? Around 60%. Okay. And sir, so just a follow-up to that question. So why are the margins at 4.3% for Turnkey? Is there any reason for that? Or No. No. It is always flexible. Because the range work done. Because it should... Like, it's generally in the range of six to 7%. Right? So that's why I'm asking. So seven percent are okay. But generally, in the new projects, cost progress are not there. Therefore Okay. Profits are little four to 5% of time. But as we Right. Project get momentum, the profit will also get more.

17:22 Right. And, sir... So as you had said that that there are a lot of turnkey projects which will go... Which will have faster execution in h two. So is that still the case? Are you expecting the ramp... Like, execution to ramp up in q h two? Definitely, our execution in our STK segment should ramp up because it is... In the first half, it is 32% from the STK segment, and we are expecting it should be around 40... At least 40% from the STK segment. Right. Sir, the sec... The second question would be... So it is on the nuclear segment. So it's just hypothetic... Hypothetically taking a 10,000 crores nuclear project. So a significant portion of CapEx would be towards nuclear reactor and the main... The nuclear island. Right?

18:12 And currently, we have opportunities in BOP and environmental studies, if I'm not wrong. Yes. So could you give us a broad broad sense of how much of the kind of, like, the project cost would... Is it visible to EIL and, like, BOP and environmental studies? No. It's like this. Yeah. Yeah. I'm just responding it. On the nuclear side, we have... We know that there are a lot of opportunities are coming, but all of them are the initial initial stages. Like, they are in the study stages. Some of them are in the environmental factors of my study. Some of them would be the initial stages of tendering. So the... This this phase would take some time and times to come because in many of the project location, it will be finalized. So we are working towards it. So it will be a good amount, but it will not... It will be a significant amount, but it will not be in this financial year.

19:02 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 in the... Our own systems in house also. We have created verticals to handle all these things and 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 how much would... Or, like, for, let's say I can't tell you percentage figures. No. No. It's 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 determining assignment. It could be a smaller assignment also. If you get a bigger assignment, then the value would be made. So it's very difficult to tell and and No.

19:51 So I I just wanted to understand if the... If EIL is... Will only do, like, BOP and environmental studies, or will there be a larger scope for We will be doing the engineering services, which will be balance of plant engineering consultancy and some... Something related to construction supervision also, kind of engineering and supervision or owners engineers role. Right. Okay. Okay. Thank you. And the last question would be, are there any change orders or any provision write backs you are expecting for this this fiscal or the next fiscal? Definitely, we have lots of change order, which we are negotiating with our clients, and it is expected that all these change orders will be settled in this financial. The next question comes from the line of Prateek Lugar from Intelsense.

20:53 Audible? Yes, sir. You're audible. Okay. Thank you for the question. Congratulations to the management on a good set of numbers. Sir, actually, wanted to ask about the consultancy division only. If you look at the specific margins for the consultancy division, what we are seeing 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 this time? First of all, in this quarter, there is no one time payment. No one time payment or settlement. And on the half yearly basis, it is 27.7270.7%.

21:41 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 project... In these projects, the venues 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 onetime. Okay. And sir, regarding specifics of the depository orders that we had got, so I think last FY 'twenty six, the depository order execution had begun along with the Dangote order execution. So FY 'twenty seven is where Dangote should ramp up and depository orders should peak.

22:32 So with that mix and obviously our overseas consultancy order would also again sort of accelerate in FY 'twenty seven. 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 only upside because we have lots of overseas order, which are under execution. But basically it depends on the first progress of the projects 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% in the first half figure.

23:22 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, cannot commit that. It will be 30%. And sir, if I extend 25%. And sir, if I extend my view to say first half of FY 'twenty eight, where, you know, would sort of be peaking and we would be having a higher run rate on the revenue side as well. So by H1 of FY 'twenty eight, 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 20,000 more than 20,000, and we will yielding more and more revenue, and our bottom line will be healthier in the coming years.

24:24 Okay. 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, all the... In the consultancy segment, only fees part is coming in the top line. But in the depository segment, all the... Yeah. All the planned and machinery cost and material cost is coming in the top line. It is just like a list of business. So that's why in the depository segment, profit margin is seven to around 7%. Okay. So once, like, the depository starts tapering off in h two... H one of FY twenty eight, 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.

25:26 We are keeping balance between the consultancy segment and the depository segment. In the consultancy segment, we are focusing about 60 to 65% and balanced on the LSTK side. So it is a balancing day. We are not leaving LSTK business totally. Thank you, sir. That will be all from me. And congratulations on the. Thank 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 commendable job. We are already there in terms of the guidance, which we have given, and we will be easily surpassing.

26:21 And there was a major contribution to this from the overseas consultancy, especially the download the 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 next twelve to eighteen months? And second, what one should look for the order guidance for next year? Are we going to continue this run rate of 8,000 plus for next year, year after that? Vivek, we have Amit, Amit, it's like this. We are bidding for a number of the projects, and you are seeing 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 a number of projects all across the world and various therapies also and including India also. So we are hopeful that we should be able to get more business out of it. As already told you on the call that we have already reached 8,100 growth.

27:26 Next year... And, actually, it will remain at least 8,100 crores, we'll definitely achieve because we have been consistently maintaining almost in the same range. And if everything goes down, politically, everything remains same and the market market remains the same. CapEx are invested, and we'll continue to grow and continue to improve our business opportunity. All right. The second, in Middle East, we were in some long term agreement with Aramco and expecting some update on that? And what is The Middle East? At this point of time, it's always published. It's already published all across. The situation is not stable there. They have not a major order we have in this waiting, but we are bidding for various contracts out there. So if something comes up, we'll update you towards the end of this next financial...

28:20 Sorry. End of this financial year, probably next quarter. By the time, hopefully, the things should stabilize or the wall should stop. So as of now, there's a lot of issues there in house. Alright. 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? I know that we can improve that. Are going to maybe we'll go... We'll improve it. It depends on the situation, couple of months. Right. And expectation is that the consultancy will still continue to be more than the the turnkey.

29:06 Okay. Last question, sir. Yeah. Yeah. It is it is like it's always somewhere around 60%, 65%, and sixty forty ratio remains. So it is always remaining that range from Somewhere... Sometimes you get a big ticket once, then the consultancy portion becomes heavy. And then sometimes you get a less ticket, but this is always doing 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 INR 65 crores. What contributed to that? On the other income, there is a dividend from the NRL to the tune of 21 crore and another dividend of INR 11 crore from the CIL, balance is regular income.

29:57 Income on our surplus funds, rental income and some other investments. Understood. And the amount yes. Actually, is increase on account of dividend from the CL and NR. And will that continue? Or how is the dividend looking like for We the full are receiving dividend on continuous basis from the NRL and CL. Okay. Okay. And lastly, the Ramagundam, how is the situation there? Is it I can see the numbers there also has been better. So outlook there would help. Thank you. Definitely, Ramapurnam is doing better.

30:43 And in this quarter, we have got the profit of INR 20 crore. And in the first quarter, it was INR 42 crore. And total profit up to this period half year, INR 63 crores. So we are expecting good more and more good news from the RMC. Understood, sir. Thank you, sir. Thank you so much. Thank you. The next question comes from the line of Peeja, an individual investor. Please go ahead. Thank you. First of all, some extraordinary numbers. And Thank you, mister I would like to understand the domestic possibilities in... Especially in coal gasification and in in hydrogen and in your two g refinery besides any other storage of crude.

31:47 These... If you can throw lights respectively on them for this current year. Because India has respect. Yeah. Yeah. Yeah. So with respect to the coal capital system, after this government of India's initiative of additional 34,000, funding for this ETF funding, there are studies which are on on this. And we have couple of bidding for a couple of projects, major projects also. Let's see with 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 out for an entity. That's the current situation of it. So let's see. Towards the end of this year, 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... We call that situation.

32:42 Regarding hydrogen and this case, nothing much is happening we have at this point of time. So we're still looking for the good opportunity and bio refinery also at this point of time. There's no major significant work is there. However, we are implementing one CVG plant for our own. We are implementing it with our own investment. We are also thinking of having another CVG plant wherein we are investing on our own in line with the government item. So that's one of the opportunities there. And how about crude storage? This thing that You know that after this, this ISKR is going to invest in our is thinking of having more strategic storages, all the parts like MP and MENA and PDNA and there are other 50 more locations out there. So those will be opportunities available for us to get. So it is because I feel most of the projects have been done by us in strategic storage, and we are very good in strategic storage.

33:37 So those will be there. Otherwise, other stories are part of the projects, major projects, so these are there. Whenever any major projects come, just good storage in terms of all the terms as a part of it. But as well as the strategy, is ISB and all projects around manuals, which are published. So we'll be bidding for those. Outstanding. And and a very broad... The thing 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 turn... The order book that you expect domestically speaking From all these segments, if you have any...

34:26 Your management would have some... I can talk about the business intake at this point of time. This is around 300 we are there, so we are going to add something more. Next year, are going to maintain it like this. And overall order book is around 30,000 crore wherein almost 60,000 crore is almost 60% is from the overseas, and balance will be from the domestic to around 40%. So let us see. Typically, it remains remains around 40, 50% we can be having from domestic marketing if we maintain the same. As of date on the order book portion, we have 75% on the product consultancy sector. This is this is good on the part of the year because we are at margin in the consultancy segment.

35:13 Naturally. Yeah. Yeah. Absolutely. Extraordinary, sir. Great feat achieved. All the best. Thank you. Thank you. You. The next question comes from the line of Akshay Koligarh from DBPMS. Please go ahead. Thank you for taking my question. Hope I am audible to you. My first question is on on the 4,200 karat order. Given the ongoing court case in Kenya around the proposed refinery project, Is there any impact on the project timeline or scope of work? And, also, as a work comments on the mandate, is there any risk on execution on the order at this stage?

36:01 Just don't go by the news. The work is already on. Work is already on. We are working on the side of it. And that is the contractors. That is the owner's perspective, and he's managing it, and he will handle the... All the legal issues and all. So as of now, there's no... We won't... We have not been advised on this, but we have... We are working on this and getting it on on this one. Okay. Thank you. And the next question on a order, book basically on a broad basis, what could be the approximately split between consultancy and a turnkey in FY 'twenty eight order inflow? Should we expect the turnkey order inflow to stay range around INR 3,000 crores in the next year? So typically, it remains this year, this is around 25 to 30% is from the LSPK and that's it from the consultancy.

36:53 Somewhere it generally remains... Besides consultancy heavy, this order book is... That order is being consultancy heavy. But typically, it remains for 60, 40 as you normally expect. 60% consultancy and 40%. Generally, it remains like this. I know. What about the order inflow per tanky? It it will stay around 3,000 per? 8,000 and it's around 8,000 and you can presume that around 30%, 40% from that. Okay. Okay. Okay. Cool. And the next question is on operating margin. Certainly, you have previously guided around 15 to 16% EBITDA margin. So are you confident on reaching this at the same level?

37:45 Yes. We are sure to maintain our EBITDA margin because we are executing more and more consultancy segment and margins are protected there. Okay, good. Just the last question. Any update on like IOCL and Pradeep Phase two and also on BPC and Andhra? I feel part of the Phase two is still still to be decided by the by the by the client because I think they are looking for the land. So now soon as they sort out the land, then the the second phase will come. So we'll have to wait depending on who. If you find me, it is still the the license of collection and study phase. So let's see. Towards the end of this year, some tender or some system, they should come up in the final implementation plan for this.

38:37 Okay. Okay. Cool. Thank you. That's it from my side. Thank you. The next question comes from the line of Shivam Bouradi from ICICI Securities Private Limited. Please go ahead. Hi. Yeah. Thanks for the opportunity, and congratulations on a very well set of members. So I... My question is how we think for the progress on education for the order is going on, the first one which we got in January 26. It's just it's just progressing well, and a lot of ordering has been done by the client and all. So our teams are also working on the... Very exhaustive engineering is on this point of time. Teams are deployed there on the engineering activities.

39:26 So work is going in full full blast. Can we expect some number in in percentage terms, if possible? I don't have the percentage of progress at this point of time, boss. 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 proper progress of exactly at this point. Sure, sir. Sure. Thank you. The next question comes from the line of Anubhav Mukherjee from TCN Capital. Please go ahead. Hello? Yes. Thanks for the opportunity and congrats on very strong results.

40:13 I joined a bit later, so this might have been covered. But if I look at the consultancy segment EBIT margin, it was 30% plus this quarter. So is there any one off or any, like, benefit from project closure? Yeah. Yeah. Our segment profit from consultancy segment is 30%, and it does not include any onetime item. It is from the it is from the. Yes, sir. And, sir, typically, when we work on larger projects like the project, is the margin better for that? Do our, like, consultancy segment margin move up? Definitely.

40:59 With the automotive project, our margins will move upside only. But we the automotive project is still picking momentum. So definitely in the coming second half and in the next year, full reflection will be there on the profit side. Sure, will it be possible to share like how much of the order book, consultancy order book of INR 20,000 crores that we have will be like get executed over next two or three years? Out of 20,000 or 75% is from the consultancy segment and 55 around 55% is all from the overseas business.

41:52 And these projects will be delivered between three to four years. Okay. I'll get back in. That's all the questions I have. Thank you. The next question comes from the line of Sonia Jain from CarePMS. Please go ahead. Hi. Thank you for the opportunity, and congratulations on a good set of number. Just want to give clarity that the recent diagnostic and got a project that we got for 4,000 crores. Given it is a greenfield project, will this project still have the execution rate of three to four years? Yes, ma'am. Generally, Double tech projects remain for for four to five years. Okay.

42:44 Got it. Wanted to know more... 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? Metajee? 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 competitors' intensity in the industry. So what would be a strike rate for... 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 we bag... We've we've beaten many companies in competition. All of mega jobs, we beat them beat them in competition.

43:35 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 the business. Our our target is to get each and every job which we bid. Right. Marketing is broad. Got it. And just wanted to understand if there is a bit any update on the CPIC paper revision. Do we expect any increase for that labor cost in FY '27 or '28? Yeah. Right now, there is just... There is no commission for the. So whenever it will come, definitely, we'll take care of that.

44:21 Do we expect it to come by FY '28 or later? Yes, 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. The next question comes from the line of Mayur Palkaria from ScriptBox Wealth Managers Private Limited. Am I audible? Yeah. Yes, sir. Yeah. Yeah. So thank you for taking my question. And actually, I I joined the call a little late because I was still believing... When I still thought it was 04:30, I had late information about the revised timing. But, anyway, sorry, if there is a duplication and I'm trying to understand more in detail the company. So I just wanted to understand that...

45:13 No. 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 and terminals, do you believe that the opportunities post this has... Would increase for us? Or has it... Or will it remain the same, or has it gone down related to what it was in the last four, five months? Managing the time. Opportunities, naturally naturally, opportunities would increase for us. When the market is unstable, the project CapEx investment is not coming and CapEx investment is stabilized, then the opportunity will be stagnant.

46:01 So as soon as the market opens, more projects come. We'll get a more option of bidding more and more market tenders would be out. So, actually, it is gonna increase for me with this kind of experience because we have Okay. So one minute international. Yeah. Tell me. Okay. Sorry, sir. Sorry. I I... Sorry to interrupt. You can please finish. I'll finish. That's fine. I have concluded my answer. You can go ahead, please. So is it only primarily because the fact that because of the disruption, the the order that tenders are not happening or all... Also... 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.

46:52 And for a player like us with global capabilities and relationships, the the the potential can be much more. Is that also a parameter or it is just the fact that the current tenders are not coming? No. Just like this, opportunities somewhere would be going down and somewhere would be increasing. So impact of the market is the impact of the the business in the Africa has increased just because of this, because there's an alternative market created and alternative opportunities available to some other manufacturers to produce that. 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 CapEx is coming or probably will take the stabilization. So it is it is reduced, but it is it is a temporary phase before that everything was fine, then the opportunity will come out, and we'll see because we will also be participating everywhere. Everybody is right now focused on the getting the food getting the crude and managing their internal resources.

47:52 But later on, when everything is fine and projects and CapEx investments will come, India, we have not seen any major impact there. If any project has to come, it is coming. There's no visual project impact on this. So sir, have you did you... In the earlier call, sir, did you have you mentioned that we were looking at around INR 8,000 crores of annual order in... Was that because in one of the answers you mentioned about INR 8,000 crores, I was just trying to understand. Is that... Was that the number? We had always told that we'll be in the range of 7,800, 7,400. Last year's total, we'll try to match. So we are we are meeting this year also, and we have already crossed that... Almost reached that order in flow prediction. So we're 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. We have already reached INR 20,000 crore, and we are stocking up annual inflows of INR 8,000. In a normal situation, once this settles down, will it be fair to say that this number can, theoretically, 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 or 8,000 crore?

49:19 That's how one should look at. Basically, we'll always be optimistic of having the higher number. We will always be optimistic. But to stabilize ourselves at this point of time to do what we we we look at it, it is the projection we have given. But we are always trying to improve on that and 15... 10, 15%, 30%, we are definitely going to see from the existing target if everything was fine. Our our would be to get more as as more as we can do. Sir, last question from my side. Sir, in the last couple of years, while currently we have again started a new cycle over the last three or two, three years, and we have seen a good accretion in the order books, which have started.

50:06 But there was a very big lull period of, you know, decade before that. Over these, you know, couple of years, medium term, will... Can you layer some qualitative around the... 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 ten years, but over two, three years based on what capability enhancements if we have done anything, any specific things you can put to highlight because I have missed that in the previous meetings of mine. So can you just highlight that which can be a potential in the next two, three years for us? Definitely. We like like this. It is like this one has to continuously grow.

50:52 So on the other last year, they're talking about it was because of some 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. So that was the earlier phase. So we have also started strengthening also. We are seeing the kind of diversification we have done. We have not been only dependent on the hydrocarbon. We are all across the sectors. We are into infrastructure. We are into ferrous, non ferrous. We are into now strategic storages. We are into... Going into fertilizer. You've seen all these new segments we have added. Today, infrastructure contributes to my order into around 20, 25%. In between, it was around 40%. So the hydrocarbon, it is definitely is the core market for me, but I've also diversified into these segments.

51:39 And we'll also run into the fertilizer. You're seeing that lot of fertilizer projects we have gotten in The Middle East. As well as in India also, we are doing various projects. So 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 we are we are focusing on the new segments like new players. There's 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 validation depending on the kind of opportunities that are available in the market. That... We will... 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.

52:27 Sir. Sir, I'll come back in the queue, and thank you so much. Wish you all the best. And great set of margin performance there. Thank you. Sure. Thank you. Thank you. The next question comes from the line of Anubhav Mukherjee from Precient Capital. Sorry, sir. Again, like I also joined at 04:30 because somehow the meeting was, like, showing up at 04:30 on the calendar. Sir, 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. Yes. I guess you are already aware that there is an AP refinery which is coming.

53:16 So we'll be targeting that one. Faraday, Priganda and will is a phase two contract would be there. There are various minor revamp projects for BPCL and other projects other refineries is there. Then there's an opportunity for the strategic storages that we are targeting there. We are working in the non ferrous make... Non ferrous segments. We are targeting some opportunities out there because there are some some companies that thinking of putting up an in this market or not. So all these segments, we are working infrastructure. There's a lot of investment out there. So we are we are still working towards it. We have recently got a data center project on the data center for one of the clients power grid. So these opportunities are there, and we are trying, and we are getting the assignments also so that we are working towards Similar kind of project. Yeah.

54:08 Thanks. And and also for, like, overseas consulting projects, how do, like, margins for those projects compared to, like, domestic? Like, those are typically higher margin projects or in line with the domestic consulting projects? Our consultancy margins remains the same, generally. Same. We don't overcharge anyone. It always remains the same segment and almost in the. Somewhere we make it good. Okay. Good luck. Thanks. Yeah. Thank you. The next question comes from the line of Darshan Shah from MultiAct PMS. Please go ahead. Hello.

54:55 Am I audible? Yes, sir. Yes. So just one question. So based on this INR 8,100 crore order inflow that we have till date, so around incremental INR $6.70 crore 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. 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? Rate terms means... What is it that you would like to understand in terms?

55:40 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 mixed up. Yeah. No. In terms of... Is there a letter of credit or... You know, just wanted to understand that. No. It's like this. Not necessarily we need a letter of credit for that. Most of the clients are known in The Middle East and also they are the future brand. They were default on the payments and all. No. Specifically, I'm checking on Africa. Africa, we have been working with this client for a long time. So we know the stability, before entering into any of the agreement, we also do our due diligence.

56:25 That's our paying capability. We always check. We don't work with the unknown client. Or we verify their credentials. Sure. Sure. Okay. Thank you. Thank you. The next question comes from the line of Deep Sangri from Detail and Broker Stockbroken 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 order that was still there, how much would be from The Middle East from this? 8,100 crores. Middle East would be a little bit limited. Something around 500 crores or so. I'm like, what is the number?

57:14 So we haven't received any orders in q two. Right? Because in... I think in q one also, it was the same kind of querying. Smaller orders. We have got smaller orders. Right. And just a follow-up to that. So MB, sir, in the agent has said that there's... In the kind of two to three year of, like, range, there's almost around a million dollar of opportunity in The Middle East regarding the strategic storage projects and all, pipeline projects as well. So are we building... Like, are we building for these projects there? And if if there will be any projects, we we will definitely build. Right? No. No. Definitely. There's lot of opportunities out there provided all that market stabilizes. There's a number of tenders India bidding for contractors.

58:03 Hopefully, let's see. There is a chance because these are long decision bidding cycle. So they come in time to come. We'll let you know. But the options is Sure. Provided everything to the driver. Sure. And, sir, just the last question from my side. I know one of the people have asked us before, but if you can please guide any, you know, in a in broad range as well, that'll be fine. Because we generally aim for 8,000 crore per year of order inflows. Right? So if you can guide something for the next fiscal... First fiscal twenty eight, that'll be very great. Thank you. Next financial year, it will be at least minimum 8,100 crore, 8,000 crore or more.

58:50 Okay. Perfect. Thank you. Thank you so much, sir. Thank you. And, again, I'll create sort of numbers. Yeah. 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. Yes. I hope we 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.