Engineers India Limited (NSE: ENGINERSIN) Q4 2025 Earnings Call dated Jun. 03, 2025
Corporate Participants:
Unidentified Speaker
Sanjay Jindal — Director of Finance, Chief Financial Officer and Director
Analysts:
Unidentified Participant
Bhoomika Nair — Analyst
Manish Ostwal. — Analyst
Mohit Kumar — Analyst
Nidhi Shah — Analyst
Majid Ahamed — Analyst
Harsha — Analyst
Kaushal Sharma — Analyst
Kaushal Sharma — Analyst
Amit Anwani — Analyst
Patanjali Jha — Analyst
Sumeet Rohra, — Analyst
Yash Hegde — Analyst
Janardhan Rao — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Engineers India Limited Q4NFY 25 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. Conclude, should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Bhumika Nair from Dam Capital Advisors Ltd. Thank you. And over to you, ma’ am.
Bhoomika Nair — Analyst
Thanks, Manav. Good afternoon everyone and a very warm welcome to Engineers India Ltd. Q4FY25 earnings call posted by Dam Capital Advisors. On the call today we have the. Management represented by Mr. Sanjay Jindal, Director.
Bhoomika Nair — Analyst
Finance Mr. Suven Dupadi, Company Secretary and Investor Relations Mr. R.P. batra, Executive Director, F&A and Investor Relations Mr. Amanpreet Singh Chopra, Senior General Manager, CNMD Office and Investor Relations Mr. Vivek Mehta, Senior General Manager, Marketing, Business Development and Investor Relations and Ms. Neha Narula, Senior Manager, Company Secretariat and Investor Relations. At this point I’ll hand over the call to Mr. Jindal for his initial remarks post which will open the floor. For Q and A.
Sanjay Jindal — Director of Finance, Chief Financial Officer and Director
Thank you. And over to you sir.
Sanjay Jindal — Director of Finance, Chief Financial Officer and Director
Thank you, Bhumika. Good evening everybody and a warm welcome to all the investors for this meet. We have declared our annual result for the financial year 2425 on 29 May 2025. Company’s order book position has reached its all time high in financial year 2425 and stands at 11,700 crore as on 31st March 2025 as compared to Rupees 7823 crore as on 31st March 2024. Order inflow in YAL have increased significantly to Rupees 8214 crore in final year 2425 as compared to the order inflow of Rupees 3400 crore in financial year 2324. In the standalone information in the fourth quarter the company have achieved a turnover of Rupees 991 crore in comparison to Rupees 750 crore in quarter ended 31st December 2024 showing an increase of around 32% on quarter on quarter basis with turnout from Consultancy and engineering segment amounting to rupees 542 crore and 449 crore in 20 segments during the fourth quarter.
Fourth quarter ended 31st March 2025 the company recorded profit before tax of 325 crore and profit after tax of 243 crore in comparison to rupees 118 crore and 88 crore respectively. During the previous quarter three of financial year 2425 showing an increase of 175% increase in Pvt. And 1. 76% increase in PACT. With respect to financial performance for the year ended 31st March 2025 on standalone basis the company achieved the highest PAG in the last ten years. The profit after tax increased by 30% to the four hundred and sixty five crore to in comparison to profit of three hundred and fifty seven crore in the last year.
Sanjay Jindal — Director of Finance, Chief Financial Officer and Director
Operating margin during the financial year 2425 increased to 15% as against 8% in financial year 2324. EBITDA of the company as on 31st March 2025 stood at Rupees 659 crore in comparison to 508 crore as on 31st March 2025, EBITDA have increased from 15% to 21%. During the year ended 31st March 25th the company reached a turnover of Rupees 3028 crore. The turnover from Consultancy and Engineering segment stood at 16. 78 crore and from Tanky segment was 1350 crore. During the year 2425 the foreign turnout increased by 32% to 371 crore as against Rupees 281 crore in financial year 2324.
Mainly from UAE, Nigeria and Kuwait region, the company is maintaining a very healthy earning per share of rupees 8 rupees 28 paisa. Last year it was 6 rupees 35 pas. On consolidated basis the company earned a profit of rupees 580 crore for the year ended 31st March 25th in comparison to rupees 445 crore and during the last financial year at 2324. Therefore there is an increase of 130% in the consolated profit on year and year basis. Year share of profit in RFCL has increased to rupees 108 crore in financial year 2425 from rupees 85 crore in fine Shiller 2324 that is an increase in margin 27%.
The profit of ELCL’s subsidiary have increased to rupees 20 crore in Pine Shiller 252425 as against rupees 12 crore in financial 2324 so this is some of the highlights from our side. Thank you. Bhumika.
Questions and Answers:
operator
Sir, should we begin the question and answer session? 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 Touchstone 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. We have our first question from the line of Manish Otswal from Nirmal Bank Securities. Please go ahead.
Manish Ostwal.
Yes sir. Thank you for the opportunity and very good set of numbers for the quarter and for the full year. I have a couple of question on the first on the one of the slide where we mentioned that we foray into the defense space in the 2025. So what capability we have built there and what kind of business we can see for engineer east India from F26 or over the medium term in that category that segment with respect to the defense.
Sanjay Jindal
First thing you should know that you are aware that we are an oil and gas company. We have extensive experience of core hydrocarbon and which is which is equally complex area. So skill wise we have no issues with us. So we had tied up with last year we had tied up with Munition India limited and we had signed an MVU with them. Thereafter we have got one assignment from them also we are executing one of the TNT project for them. We are eyeing for more projects in this segment including we are exploring the private segment.
Wherever this opportunity comes will be tying up with them. So experience wise we are readily we are ready for this because engineering is our core experience. And we can be fully capable of handling any of this assignment. So this is one of the segment which we are keeping it as a potential segment for expanding our business horizon.
Manish Ostwal.
Can we secure some orders in current financial year?
Sanjay Jindal
Sir, we will try. This financial year has started we will be targeting few of the projects. Yeah.
Manish Ostwal.
Now coming to the current financial performance. So sir, last year we have a 7,800 crores of order book. And current year we saw an order inflow of almost 8200 crores. And we delivered a revenue of 3200 crores for the year. And the margin of both the segments have improved consultancy as well as turnkey projects. So the question is one is based on and compared to the last year order book we have a 30%, 38% of execution of the opening order book. So given by the trend or the order Book mix what kind of execution we can anticipate for the current financial year and how we should think of the margin in the both the categories like consultancy as well turnkey.
Because even turnkey project margins during the quarter and the full year is much higher than what we added to the market. So can you comment on the one is the growth aspect, the second is the profitability trajectory Based on the current order book that we have.
Sanjay Jindal
We have first thing is that out of you have seen that we have currently booked an order book of 11,717 crore. So now these are the new orders which have recently booked and there was a little bit decline in the turnover because many of the old projects which were under execution have been on the closure of it. Because there was a mega projects which have a typical timeline of four to five years, three to four years. So now you must have seen in the last year we have got the two mega petrochemical complexes project and many other projects which we are.
Which we which are getting initiated. So again the time cycle is three to four years. The billing would start in this financial year. So naturally will be start earning and adding to the revenue and turnover would increase in that. And with respect to the profit margin we are going to maintain the similar profit margin.
Sanjay Jindal
As regard margin is concerned, our margins in the consultancy segment and SDK segments are intact. Earlier we have given the range of 5 to 7% in the LSTK and in the consultancy business it is 25%. And this year we could achieve the higher margin because of the some change order. We could finalize with our clients for which expenses have been already booked to our profit and loss. So in the company like El where revenue comes from the implementation of project change order is a also important part. And it depends even the change orders are finalized.
So a lot of change orders have been finalized in this function.
Manish Ostwal.
And lastly sir, order inflow against the 8200 crores of order inflow. Where what kind of order inflow we can anticipate given the outlook of various segments in your presentation. So whether we can sustain the current year order inflow or we can do better for current financial year we can.
Sanjay Jindal
Bust us to sustain the existing order value. We will the order inflow what we have got in this financial year we’ll try to sustain the same and we’ll further grow from the existing order book. Sorry order inflow. For your information, as of today we have already booked 1300 crore worth of business. And then the second year it’s in the second month itself. So we Are working towards it and hopefully it will be our performance will be better than the past month.
Sanjay Jindal
Okay sir. Thank you very much. And all the best for the current financial year. Thank you.
operator
Thank you. We have our next question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Hi. Good afternoon sir. And thanks for the opportunity. Am I clear? Sir, my question is a note number four and note number five. I think you are. You mentioned that there’s impact of 112crore for the. For the variable considerations. Right. And node number 5 says that we have also written 82 crore. Right back. My question is for the quarter is it fair to say that the total impact on the profit is around 112 plus 82 crore which is closer to around 200 out. 200 and 200 and 214 crore. Sorry. 194 crore.
Sanjay Jindal
Yeah. Look, 112 crore is our change order. We could finalize with our clients. And against this change order we have already incurred expenditure. Since we have already incurred the expenses. Therefore it was a part of turnout. It was considered as part of turnover. Like I already tell in the company like El where projects are implemented and some of the work are always done which is beyond the scope for which change order is always finalized by the client. And generally it takes the time expenditure is insert first then the revenue comes. So under this scenario we have got got two major change orders for which change order value is 112 crore and 82 crore.
Reversal is pertains to our guarantee and warranty. You know whenever project is built there is also provision for the guarantee and warranty of the project. So we keep. We keep continue to make provisions of the guarantee and warranty. And whenever our defect clarity period is over and there is no guarantee and warranty is balanced then that provision is reversed. And this is the accounting procedure. So there is a reversal of 82 crores for which we have got the client permission to reverse if there is no guarantee and warranty on this account.
Mohit Kumar
Understood sir. My. My related question is. You’ve just in the note now 4. You are saying profit from operations for the quarter and the year. Does it mean that
Sanjay Jindal
this is. That this is an impact on the profit after tax or probably before tax. Profit for operation is always profit before taxes. So there’s a taxation impact. Right. Which I need to consider. It is excluding the other income.
Mohit Kumar
Okay. Understood sir. So my second question is on the. On the consultancy. I think we had a very fabulous year. Last year which was 4,000. I think some 4,000 odd crore in the Entire fiscal which I think one of the best years in terms of the 4,500 crore. I think which is one of the best in the. In the last several years. Do you think is it possible to replicate this in FY26 especially on consultancy order inflow given again whatever you see on the. In the macro or do you think there is some dip in this order inflow? F26.
Sanjay Jindal
With respect to the order inflow in the consultancy segment it would remain. It should be in the same range. You should try that. Because we keep on bidding for the multiple projects altogether which are more consistency. And we have already like the projects like Para Peep and all which are under execution. Their phase two is expected to come in the towards the end of this financial year. So we’ll be able to. Which is a major component component of the project. So this kind of many first is these are the awarded projects. And another is like we are bidding for a number of the projects. So we hope that the consultancy would also be of the significant contribution in the total order book.
In the total order info.
Mohit Kumar
That’s it. Of course. How do you think about this international order pipeline in the consultancy? How is it shaping.
Sanjay Jindal
Like what you have seen it last year that it is thousand crore. So we are working towards it because earlier we were strengthening our Abu Dhabi office. It has done quite well and it is improving its performance. We are targeting the large value project. So hopefully this order inflow will further increase or remain in the same place. In fact we already have in this financial year. In this financial year we already booked 380 crore worth of project from Middle east from Kuwait. So you can see that we are moving ahead with the same pace.
Mohit Kumar
So. We can reach to the target what has been good.
Mohit Kumar
Good payer and good to see that some momentum. Thank you and thank you.
operator
Thank you. We have our next question from the line of Nidisha from ICICI securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my question. So my first question is on the order inflow for TurnKey. So at Q3 we mentioned that the nine month order inflow is is 30. And now for this quarter we have mentioned that it is 36. So what is the ordinance of a discordant. Have. Have any orders but cancelled cancellation. Let me tell you what happened is there was one of the assignments which was awarded to us on a go ahead basis. Go ahead basis is a. Is a kind of concept. They will give you letter to proceed with the work and then pending settlement of the order.
So by the time the Year end closes. It was not a formal award was not received. Okay, so that’s how we have to. In books we had to return it. But now it is. It is about to be settled. And then again it will come back to the ordering flow. So that’s how you must have seen my understanding. Then what is the ordering flow for this quarter? So Q4. Sorry. And then in which quarter and how much adjustment would I have to make for this? For this order that has been released? Get to know Ma’ am, we’ll get to more get to know about this when this would be settled.
Sanjay Jindal
The order intro as of now I told you around 1800 crores. Sorry, 1300 crores we have already received. Out of which LSTK is around. LSTK segment is around 800 crores out of 1300. So quarter is still going on. So we will have to wait for. No, I. I meant for. For Q4. For Q4. Let me check. Q4 order issue was something around 440. Sorry, it was turnover. So we’ll share it with you later.
Sanjay Jindal
Okay. You can get it separately. We’ll give it to you.
Sanjay Jindal
Okay. Just. Just lastly for this. So the. The order that was. That is delayed. What is the value of that one? Around 300. Don’t have the exact value. Around 300 crores. The differential usage is the same one which will come back later on.
Nidhi Shah
Got it. Thank you.
operator
Thank you. We have our next question from the line of Majid Ahmed from Pinpoint Asset Management. Please go ahead.
Majid Ahamed
Yes, thank you for the opportunity, sir. I’m audible, sir.
Sanjay Jindal
Yeah.
Majid Ahamed
Yes sir. Just want to understand that like going forward what would be the mix for FY26 and 27? Sir, for consulting and turnkey.
Sanjay Jindal
Order in flow could remain in the same range. Consultancy would be a little bit more than the LST kits. Always remain in the range of 50, 55%. 55. 60% is consultancy and balance is LST kit. So we prepare the. We will keep the margin healthy in that range itself generally remains in the same range itself.
Majid Ahamed
So 55 to 455 in consult engine. 45 in the turnkey.
Majid Ahamed
Yes.
Sanjay Jindal
That does not mean that we restrict it. We have to get every business. It depends at the end what kind. Of number gets settled. Depends. But there is no hard and fast rule for us.
Majid Ahamed
Okay, this is the train generally this.
Sanjay Jindal
Is generally trend we are talking about.
Majid Ahamed
Okay. This is general trend. But this is the final outcome. Trend of final outcome. Okay. So secondly, what type of capex are you looking through for this coming year?
Sanjay Jindal
FY 25 to 26 apex is routine.
Sanjay Jindal
In nature on the building for the renovations as such. So there is no major capex is in pipeline.
Majid Ahamed
Okay. And going forward how much is the. Order guy bidding for? Like any order 5, 10 that you’re.
Sanjay Jindal
Bidding for the going on or many many bits are keep on going. So those are confidential. Nature cannot be disclosed. The end result would come towards the end of the financial year. You’ll keep on, we’ll keep on updating you with respect to the business. I’ve already updated you that we have secured this much business on updating in the every meeting. Thank you sir, all the very best.
operator
Thank you. We have our next question from the line of Harsha from Rira Holdings. Please go ahead.
Harsha
Hi sir. Good afternoon and congratulations on fantastic numbers. So my question is now if I look at the order in close the last five years we have clearly seen a very strong uptake in terms of ordering. So almost from 1500 crore in FY21 to 8000 crore this year. But at the same time when I look at the revenue last five years they have almost been stagnant at around 3,000 3,200 crore. Now in some of the previous calls we have reiterated that there is aspiration to grow to a 5,000 crore top line or maybe even 7,000 crore over next say maybe four, five, six years.
So just want to understand in terms of execution what is going to change in next five years that we are being optimistic in terms of say double digit kind of growth to grow from 3000 crore to maybe 7000 crores. So what is going to change in in terms of execution?
Sanjay Jindal
Look for the last four years our order book was in the range of 7,000 to 8,000 crore. And whenever a project is awarded to EIL its turnout goes for three to four years. Suppose I get the product of 100 rupees. Then it comes in the turnout for the 34 years. So therefore with the 7 to 8,000 crore order book our turnover was flat somewhere in the range of 3 to 3,000 to 3,500. So now it is the first time our order book have crossed the barrier of 10,000 crore. Now it is 11,700 crore. And we are sure that we will continue with this kind of order book.
And definitely with this order book project execution. With the project execution alternative will continue to rise. And we are expecting at least 15%, 15 to 20% jump in the turnout of this year. But again this depend upon the how the project execution goes.
Harsha
Okay? Okay. And sir out of the 11,700 crore order book we have out of this how much would be our international order book? And also how much out of this 11,000 odd crore would be from non oil and gas segment? Because they’re also looking to enter a lot of new sunrise sectors. So as of now what is the orders from non oil and gas sector and how big you expect these to become over the next three to five years?
Sanjay Jindal
Order book from foreign consultancy is 2000 crore. Around 2000 crore.
Harsha
Okay. Okay.
Sanjay Jindal
30. 30%. Around 30. 35% is the from the non oil and gas sector.
Harsha
Okay. Around 30. To answer which in non oil and gas which is the which would be the major contribute contributor to the order book?
Sanjay Jindal
Be the major contributor. Then you have chemicals, you have non ferrous metallurgy, you have power, your clean energy. All those sources we can get the business. Okay. And going ahead the hydrocarbon
Sanjay Jindal
and the non hydrocarbon.
Harsha
Okay. And the non oil and gas which is around 30 to 35%. Will it continue to remain at same level going ahead or will that portion of business increase?
Sanjay Jindal
This portion may increase because we are quite quite a bit focusing on the infrastructure. It has been increasing continuously. So we see that that is also going to increase.
Harsha
Okay. And the margins are similar in non oil and gas.
Sanjay Jindal
Yes. The margins are on the basis of the on the type of bidding we have. It is on consultancy and lstk. So for the consultancy and LSTK would remain in the same range which has been told to us like 24 and 6 to 5 to 6% depending on which mode we get the assignment.
Harsha
Okay, understood. Thank you so much sir. That’s it for my time.
operator
Thank you. We have our next question from Lionel Kaushal Sharma from Equinox Capital Ventures. Please go ahead.
Kaushal Sharma
Am I audible? Good afternoon.
Sanjay Jindal
You are audible.
Kaushal Sharma
Yes sir. So my question is on your margin.
Kaushal Sharma
Side like if we see your past performance. So we are in the range of 27 to 28% in the consultancy and turnkey. We are 3 to 6%. And suddenly we got a jump of around 30% in consultancy and 8% in turnkey. So what was the key growth drivers of such a good performance in the margin and will this margin be sustainable in the future like two to three years. And the second question is on my on working capital life coverage like improve a lot around 400 crores negative in this year for our cash flows. So what is the normalized data days in our business and how long will it take to realize these Saturdays? And my third question is on our industry side, sir, what kind of opportunity are we looking in our industry like overall market and what cagres are we expecting to grow in next two to three years in our industry?
Sanjay Jindal
First of all let us talk about the margin. Our as you said our normal margin is 25% in the consultancy business segment, business segment profit and lstk it is 5 to 7%. But this time we could achieve the higher margin because some of the long pending change orders we could finalize with our clients and with the impact of these change orders our margins are on higher size. But definitely for the future we are targeting in the normal range of 25% and 5 to 7% in realistic business. As regard, as regard your payment cycle, our payment terms with the clients are 30 days only but we are able to receive within one to two months time from our line it is not more than 45.
Generally not.
Sanjay Jindal
Yeah, not more than 45. Your voice is not clear.
Kaushal Sharma
Yeah, so I’m just saying that 45 days is the normal trade receivable cycle.
Kaushal Sharma
Right. In our business.
Sanjay Jindal
generally our payment terms are 30 days and most of the payments we are receiving in 30 days on an average it comes to around 40 days.
Kaushal Sharma
40 days. If you talk about little bit like work market opportunities.
Sanjay Jindal
Safely, no issue.
Kaushal Sharma
Pardon sir,
Sanjay Jindal
you can take 45 days safely.
Kaushal Sharma
No, I am, I’m. Yeah, so I got it. My question is on our industry side like consultancy business and the tanki business, how how much market size currently and how what category are we expecting going forward two to three years down the line?
Sanjay Jindal
It’s a very big market. Whichever segment you go, it’s a big market. Whether we are going in oil and gas, you are going in infrastructure, you’re going into the perest non business metallurgy segments. All these are the market. So there is no specific size of the market as such. You can see the, you can track the investments that are coming.
In the hydrocarbon segment you can see the investments coming up. In the infrastructure segment you can see the investments in the steel segment, non ferrous segment. All these segments we there are a lot of potential and government of government of India is putting a lot of focus and pushing growth in these segments. So actually whenever there is a growth and new projects will come we’ll also build and we get the business. So that’s the market for us. And so what is our current order book pipeline in our book and our success issuing that success ratio you can say around 25 to 30, 35% competitive scenario.
Kaushal Sharma
And what is the current product pipeline?
Sanjay Jindal
We can’t tell you the order pipeline we already told you that the order which we have already received is around 1300 crore as of now first two months we reached the target of the existing business inflow which we have received in this year and will be further growing in that.
Kaushal Sharma
Sure. Thank you. Thank you very much for answering the question.
Sanjay Jindal
Okay, thank you.
operator
Thank you. We have our next question from the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
Hi sir, I’m audible.
Sanjay Jindal
Hi yes, good afternoon.
Amit Anwani
Yeah, good afternoon sir. First of all congratulations to the whole team for very good set of numbers.
Amit Anwani
And my first question is that on. The overseas consultancy we have done phenomenal job this year roughly about thousand plus crore. Other intake order book is sitting at about 2800 crore I think all time high. If I see past, you know, eight, nine, 10 years and you have been talking about setting up office in Kingdom of Saudi Arabia wanted to understand are we looking higher inflow numbers from overseas market in FY26,27 and by setting up office there are we going to, you know build further what is the addressable market let’s say in Kingdom of Saudi Arabia and since a lot of engineering companies are talking big about you know, capex happening in Kingdom.
So we wanted to understand our outlook in overseas where we have been positive for FY25 and are we targeting better number for FY26 and what is the addressable market competition win rate? Any idea if you would like to.
Sanjay Jindal
Give with respect to the international market Targeting like our focus to international market has been increasing this year it is around 13%. We are targeting towards it, we are trying to increase it to more, more more on this segment like the 13% will try to cross that 13 segment 13% of the total order in flow like to increase that and accordingly we are focusing on the specifically on the Middle East. Middle east we are strengthening our Middle east office in Abu Dhabi which is catering to the other terrains like Kuwait, Bahrain, Oman and other nearby countries.
At the same time we are setting up the Saudi office. The current major contribution has been from the Abu Dhabi office which has done a wonderful job and increased their business from there. So we are, we have improved our categorization in those countries because these countries are very systematic in nature. You have to improve, we have to stay there for a long time. You have to perform. That’s how you are upgraded in the categories and then you’re allowed to bid for the large value for it. So as of now with the consistent focus on this we have been able to go to the larger category project and we are continuously bidding for this so we are hopeful that when we are bidding for the larger category projects we have successful then this order value will further grow.
With respect to Saudi, Saudi is one of the biggest market in the Middle east. You know that the maximum capex investment comes in Saudi so there’s huge potential for them and there’s a lot of demand for the good engineering company however this will take some. It is still in the nascent stage we are setting up the office it takes some time to settle down register yourself, establish that office and panel with yourself with all the companies and manage all the resources then you start getting the business so there. There’s a lead time in getting the business but it will be a very good when.
When it is established and we are. We are start running it will be targeting very good business from them so that’s. That is our anticipation so that’s the.
Amit Anwani
Answer for myself so what is the. Win rate and typically if you’re bidding the project in Saudi we can’t Saudi we are not. We are not working as of now we are just entering. Okay okay the other Middle east geographies what is the win rate?
Sanjay Jindal
It is quite a good rate. It’s very difficult to tell what is the win rate because there are number of bits are there. You are there with the. We are. We are there as a panel consultant we have number of frame agreements going on under which we have competition with co major consultants so win rate is good Very difficult to tell the number as such.
Amit Anwani
Right. So with respect to order inflow prospect we have been highlighting that we got very good orders from past two financial years and focus is to have more than 5000 crore annual order intake run rate. So are we sticking to that for FY26 27?
Sanjay Jindal
Oh yes very much.
Amit Anwani
Okay any sir orders which you would like to highlight where we are L1 or maybe past 1218 months the order and order value if possible for you to highlight in all India I mean.
Sanjay Jindal
Right now many of the projects are in the bidding stage so it’s very difficult to tell you at this point of time because these are called. This is a competitive competition time so let’s hope for the best. We’ll keep you updated in the subsequent meeting as soon as the result comes. As of now for your information we have 1300 crore worth of business we have booked as of now as of May so we hitting the pace of. We’ll keep you updated on this in the subsequent meeting.
Kaushal Sharma
Yeah sir one clarification on the change order you said roughly about I think 112 crore, 128 crore revenue and 112 crore for FY25. What is the change order you talked about? There’s one more change order for FY26 also. What is the value of that change order?
Sanjay Jindal
We talked about the change order which. We have received in the financial year 2425 and it is a continuous process because EL is involved in the execution of mega projects for the scope of work done which is not part of scope of work. We get change order from our clients time to time. So in this financial year we could get the change order of the 112 crore store which have been accounted in the financial account increase in the contact value original awarded.
Sanjay Jindal
So that largely flows through to the profits, right? Largely close to profit because expenditure have been already incurred by it.
Amit Anwani
Yeah,
Sanjay Jindal
that’s why it is mostly it represents the profit portion only in case work have been already activated.
Sanjay Jindal
Right? Sir, the last lastly on other income which has been keeping roughly about 160 crore from past three years. What is the dividend income from NRL and your outlook why other income is keeping same? Will it be same for next financial year as well? For this financial year I would say FY26.
Sanjay Jindal
In this financial year we are. We got the dividend of 12 to 13 crore from the NRL and we are respecting the same level of other income in the coming next year.
Amit Anwani
Understood. So thank you so much. Thank you and all of us.
operator
Thank you. We have our next question from the line ofccc , an individual investor. Please go ahead.
Patanjali Jha
Thank you for taking my question and in my view very heartening results look like going back into the former self where the margins have improved dramatically and hopefully the gaining momentum. Along with your unprecedented audible. My questions are primarily two. One, Aramco seems to have now shown its very keen interest to come to India with figure a realistic figure of 25000 crore investment with BPCL in Andhra and with ONGC in Gujarat of which the Andhra one is gaining momentum and is at a higher stage of fruition. So for us any refinery within the country especially with the public sector undertaking we only think of engineers India not because it’s a public sector taken but very competent and with a certain degree of monopoly in the segment.
Sanjay Jindal
So. His take on that, that is the first question. With respect to these two refineries. We understand that.
Patanjali Jha
Yes, yes, yes. The likelihood of this is likely.
Sanjay Jindal
This is a capex decision that both sides have to agree. We have no comment on that. We can only Anticipate that this come. This project should come fast and we’ll have another two opportunities to bid for it. Because nowadays even you are saying it’s some monopoly. There’s no monopoly as of now. Because all these jobs we have done is under stiff competition. There’s no advantage of being public sector. Then we get the job now. So we are ready that these are the two big complexes and would be a sizable job. When they are realized. We will be very much keen in waiting for those science to come.
Let’s hope for the best. These come.
Patanjali Jha
Yes.
Sanjay Jindal
We are getting job on nomination basis. Because first, we are technical competitive, technically competitive. Second, we are cost competitive.
Patanjali Jha
That in fact you are competent and that is how you get it. Nothing to do with the legal of monopoly.
Patanjali Jha
In terms of.
Patanjali Jha
Certainly agree with that. My one more related question. In the area of your core competence. You know, in the African continent, our country now has enormous goodwill. Be it Guana, be it Suriname. So much so that without naming the current this thing, the arrangement that they have. Some of these companies they found atrocious in terms of. You know, they found them with the wrong numbers and inflated numbers in order to get their share of royalty. And to then, uh. Especially in the case of Guana, uh. The company had the audacity to say that it was a total mistake that ran into several million dollars.
Sanjay Jindal
What is it all about? We just want to understand that we’re not clear about your question.
Patanjali Jha
In Ghana they. They have some arrangement with a multinational company. I’ll not name it. And they found that, you know, the profit sharing, royalty, all that they have a fantastic fine. And there that company was inflating the numbers of expenditure and stuff like that. That’s what I’m trying to say. Ran into hundreds of millions of dollars. And you know, I’m totally mistake. Anyway, so this is to talk of the character and the integrity of the other company. Against that backdrop. When you are an entity of great integrity. And our country having such a great, you know, relations with them.
You have already some track and some of the projects going there in Nigeria and Vienna. If I remember correctly. What is our.
Patanjali Jha
Because that is the future. This thing which has the maximum find.
Sanjay Jindal
They have their own ways of working. But we are very much clear what way we have to work. And our dealings are very crystal clear.
Patanjali Jha
I’m saying that against that backdrop of people of doubtful integrity. And our company being so correct and competent.
Sanjay Jindal
So we have been able to make success in that. Because again, Guyana proposed project which we have got is under competition from the Other companies, international competition. In Nigeria again it was again a competition even though the investor was private. But he had gone for a competition and that’s how we got the assignment and we have been engaged and we are completed and completed our commitment for the book.
Patanjali Jha
So going forward what is your take that with such a massive fine and with our competence and what is the outlook? And what is the outlook?
Sanjay Jindal
We have already proven over metal there we have been. We are working in Nigeria for the other clients also one of the LNG projects which we are doing this is only on the basis of experience one another private sector public pet scam was coming. So we are also involved in that on that initial stages of work. Similarly in Guyana also we’ll be targeting the future. They’ll be having the future phase of that project and the other the oil has come. They will further be utilized for processing of it and the downstream facility would come so being there.
So we’ll target those projects with our competence and the experience. So that’s the present outlook.
Patanjali Jha
I think. Great to hear that. And we have great hopes that you would have as a company a fair share of your work coming from.
Sanjay Jindal
Hope. For the best
Patanjali Jha
also. Yes. A small question also of the renewals which your CMD talks about with fasting and it’s about the tidal energy and the platforms being constructed for the nuclear or the 2D especially the 2G. What will be you know, progress in Rumaligarh refinery?
Sanjay Jindal
On the Nualegarh refinery the commissioning activity has started. So as you’re aware this is the first bamboo based refinery in the country which has been taken from lat scale to a commercial scale. So that is going on well for the. On the renewable sides and on the offshore wind side that there’s a conceptualization has already been taken place and went into process of making a business case for the clients to take it forward.
Patanjali Jha
Yeah. And what is the addressable size of the business? Because you know on the land side it’s much smaller turbines and there are companies with the huge market cap. So I’m told that the oceanic this thing is you know, five times because than this. So if we are there and if it is the beginning of the size of the market.
Sanjay Jindal
Yeah, exactly. Because the market size is huge and it’s a nascent market that we are trying to enter. And once as well we are aware of the offshore platforms, both process platform and unmanned platforms. Quite well. Once we enter the market we’ll enter in a good way and we hope to have a good pie of business in this market as well.
Patanjali Jha
So all the very best. I mean we have great hopes for you to perform even better and excellent set of numbers from the institutions to the entire.
Sanjay Jindal
Thank you. Thank you.
Patanjali Jha
Thank you sir.
operator
Thank you. We have our next question from the line of Sumit Rohra from Smartson Capital. Please go ahead.
Sumeet Rohra,
Hi sir, very good afternoon to you and your entire team. So I’ll just keep it very brief. So you know, with the you know, order book visibility which you have in hand today and you know, with the robust order flow which you’re expecting like last financial year. So now can we basically say that, you know, we can basically expect, you know, this 15 to 20% revenue growth which you expect for current year to be a recurring phenomena. And can we now basically expect that engineers, India is now basically well on the growth path. That’s my first thought, sir.
And secondly sir, you know the thing is that if revenue is going to grow 15 to 40%, our PAT margin has been about 18% the last financial year. So do you think that operating leverage can also kick in, you know, because of the fact that revenue growth does kick in. So what’s the pat margin which you basically expect for you know, current financial year? My lastly sir, my last question is basically you know, this energy transition which is basically getting momentum around the world and you know, with the green energy not being as lucrative as you know, earlier planned and you know, peak oil being far ahead, you know, compared to what it was anticipated in the very short, what do you think, you know, could be the order momentum, particularly from the Middle east because of the fact that you know, you’re opening offices in Dubai and Saudi as well which you highlighted earlier.
So do you actually think that you know, with green energy being stalled, etc. Etc. Do you think that, you know, the momentum on this side of the conventional business can actually accelerate?
Sanjay Jindal
Let me tell me first about the order book position. The as we have told the earlier our order book was ranging in the 8,000 crore. Now it has been reached to 11,700 crore. And definitely with the execution our turnout will rise and we will put all efforts to take it by increase of 15 to 20%. Definitely we are also targeting. But how much pack will be there we cannot tell right now because we have already told our margins in the consultation segment is around 25% business segment and in the LSTQ job it is 5 to 7%.
So definitely our bottom line is also going to improve. But how much?
Sumeet Rohra,
Okay, I mean, I mean I assume that basically what you reported in the last financial year should at least be you know kind of where we can build on from. Correct. I mean is that understanding correct?
Sanjay Jindal
Yes, exactly. That would be. Will put all of us to keep that base.
Sumeet Rohra,
Okay, wonderful. And secondly you know if you can now basically talk a bit about you know because you know a couple of years back you know it was so anticipated that you know peak oil is basically, you know very near and and all of it is not very true. Right. So you know you will see good growth in the conventional business as well. So do you think that you know this eight, eight and a half thousand crore which we got actually can actually accelerate quite sharply from here.
Sanjay Jindal
It is going to be there because you see that many of the companies are again going back to the hydrocarbon or the coal or all that business recent trends you must have seen with companies like many companies you must have seen they’re going away from the hydrocarbon hydrogen and those. Because the profitability in that segment and the. And the cost competitiveness of those things and hydrocarbon is being boosted internationally also. In any case that doesn’t matter. India is going to have a tremendous demand for the hydrocarbon and with the kind of population we have and definitely there’s clean energy is also being upon a good contributor.
But the way we our demand is growing with respect to all these hydrocarbons. Naturally we’ll have to have those facilities till the time this is going to go. We will be also having projects of petrochemical segment and gas in the downstream segment. It’ll be less of a gasoline but more of a pet chem segment. So we don’t see any major difference in the hydrocarbon business from all these segments. So that is going to be there for at least next next decade.
Sumeet Rohra,
Okay, wonderful. Thank you sir and we should. All the best.
Sanjay Jindal
Yeah. Thank you.
operator
Thank you. We have a follow up question from the line of Manishotwal some mineral bank securities. Please go ahead.
Manish Ostwal.
Hello. Sir, I have one question on this. The JV profit which we report in a consolidated level. So can you tell us the the in terms of activity in that the JV property and how we should think profitability trending for our at the consulate financial level.
Nidhi Shah
Actually that JV is Ramagundam Fertilizer and Chemicals limited that is engaged in the manufacturing of ammonia and urea. And in this financial year our share for the profit is 107 crore against the previous year share of 85 crore. Our share in the RSL is 26%. So our 26% is 107 crore. That is included in the bottom on consolidated.
Sanjay Jindal
Okay sir.
Manish Ostwal.
Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. Anyone who wishes to ask a question, you may press star and one. Now we have another follow up question from the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
Hi sir, thanks for taking my question again. Again a question on consultancy overseas. Is it fair to assume that the consultancy overseas will have better margin than consultancy domestic.
Sanjay Jindal
Consultancy overseas, if you see an average of 34 to 35% will be maintained. But you can in one way say that consultancy in overseas will have little bit more margin than the Indian segment. But it again depends on which territory you are working that the competition we have. It all depends. Right?
Amit Anwani
And second question is that 35% is non oil and gas in the order book currently if I heard it right. So cumulatively if we see the order prospects for FY 26, 27, can we assume that this 35% non oil and gas can become 40, 50%. Will it increase? There’s a much higher pipeline on non. Oil and gas as well.
Sanjay Jindal
It will remain in the same range, 35, 40%.
Amit Anwani
Okay, understood sir. Thank you so much.
operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. Anyone who wishes to ask a question, you may press star and one. Now we have our next question from the line of Yash Hegre from DAM Capital. Please go ahead.
Yash Hegde
Hi sir, good afternoon and thank you for the opportunity and congratulations on a great set of results. So my only question was, could you. Give a bit of an outlook on both NRL and rfcl and talk in terms of what kind of investments are we looking at in both of them for FY26 and the dividend that we expect to receive from NRL? And also when do we expect RSCL. To start paying dividends?
Sanjay Jindal
As far as dividend is concerned, last year. In the current year we have got the dividend of 12 crore rupees from the NRL and RFCL is still to declare stars still to start declaring dividend. And we are expecting that in the current year RFC may declare some dividend for their investor. As far as the investment, we have already completed the investment in the nrl, we have already completed all the investment cycle and there is no further planned investment in the RFCL as well as nrl. We have already subscribed to the right issue of NRL that has been completed.
Yash Hegde
All right sir, thank you and best of luck for the financial year.
Yash Hegde
Thank you so much.
operator
Thank you. A reminder to all Participants, if you wish to ask any questions you May press star and 1. We have a next question from the line of Patanjali Jhav, an individual investor. Please go ahead.
Patanjali Jha
Yes, this 2G bamboo based clean energy in the northeast. You would be perhaps the first in the world to be executing this.
Sanjay Jindal
That’s fine.
Patanjali Jha
And I know I follow that part of renewal energy. My friend understands that very well. So that’s a huge. Because you’ll be creating so much of. So much of employment for the farmers income. I really really congratulate you on that. And if successful do you see participating in more such projects of 2G along with other partners?
Sanjay Jindal
We hope so sir because this is our plant and this is our pilot plant also. You can say which will give our. Which will give a platform to code further and to owners to put more plants like this.
Patanjali Jha
Do that because it is not only the income and profit for the company. It is one of the biggest service to humanity and to Mother earth. I wish you to be very successful in this and set up many more such projects across the country along with partners.
Sanjay Jindal
Course.
Patanjali Jha
Thank you. Thank you.
Sanjay Jindal
Thank you. Thank you.
operator
Thank you. We have our next question from the line of Janardan Rao from ShareTrend Research. Please go ahead.
Sanjay Jindal
Good afternoon sir. But on the in the market.
Janardhan Rao
There is a lot to be improved. Because companies like NBCC Limited and rising the PE ratio of above 55 and 66. Your company is stock is getting only around 22 PE ratio. Part steps company is taking to improve the market perception.
Sanjay Jindal
Sir, we are giving good results to improve. To improve the concept of our investor. And we are requested through you. We are requesting our customer to give PE of 55 to EL also. That is all.
Janardhan Rao
Frequent media interactions are required to improve the perceptions about this task. Because. In the banking side Kendra bank. Is doing wonders in the PSU table. Your company is doing wonders on the results. But market is not recognizing the performances. That is what I want to emphasize.
Sanjay Jindal
Definitely we are making awareness to our investors, mutual funds and other investors also. That’s why our company have done press meet also so that our investor can be aware about our progress path. Because this is the first time where our order book is all time high. So definitely this order book will help us to get more turnover in the future. More turnover and more bottom line profit. And we will continue to get the orders in the coming years also.
Patanjali Jha
So definitely best of luck for the nation building.
Sanjay Jindal
Yeah. Thank you.
operator
Yes sir. He got disconnected. That was the last question for today and I now hand the conference over to the management for closing comments.
Sanjay Jindal
Thank you very much. Thank you. Thank you.
operator
Thank you. On behalf of Dan Capital Advisors, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.