The net profit of the company increased by 27% at Rs 119 crore in Q2FY18 against Rs 94 crore in the corresponding quarter of the previous fiscal year. Revenue from operations grew 26% to Rs 429 crore from Rs 339 crore in the same quarter year ago.
The revenue growth was driven by 50% jump in the turnkey project business even as consultancy business was consistent with 21% growth during the quarter which was largely driven by domestic business (up 39%).
Despite 22% jump in employee cost, the operating performance saw 470bps improvement in EBITDA (earnings before interest, taxes, depreciation and amortization) margin at 32.4%, largely driven by the turnkey project business.
“The company is confident of booking new orders worth Rs 2,500 crore during FY18 mainly through the consultancy business. The company also expects some delay in finalization of Rajastan Greenfield refinery which was expected in 4QFY18,” analysts at Antique Stock Broking said in Q2FY18 result review.
Regarding new orders, the company is looking at a strong pipeline including orders from refinery and petro-chemicals and few orders from Namami Gange programme. The company is looking for 15% and 25% growth in FY18E and FY19E, respectively. The consultancy business margin is expected at 25-30% while the project business is expected to remain between 6-7%, the brokerage firm said in a note.
At 12:05 PM; the stock was up 4% at Rs 188 on the BSE, as compared to 0.46% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 5.22 million shares changed hands on the BSE and NSE so far.