Engineers India looks at doubling order book targets of FY17

Engineers India Ltd riding on the spike in domestic orders from the hydrocarbon sector met its order book target for the current financial year in the first quarter. The company is now confident to report twice of what it had guided for in order book growth at the start of the financial year.
 

“We would do double our target, “said Sanjay Gupta, chairman and managing director, Engineers India on whether there is an upside revision to the order book growth guided for the current year.
 

As of June 2016, the company had an outstanding order book of Rs 5,467 crore. The company had guided for an order inflow for Rs 2,000 crore in the current financial year to analysts.
 

On any likely rise in oil prices and in its likely impact on the company’s order book, Gupta added, he remains confident the company will maintain its steady growth .The company has seen a significant spurt in its order inflow from domestic companies in the hydrocarbon segment. State-run oil refiners are required to upgrade their facilities to meet product specifications as per the Euro-VI emission norms by 2021.

However, going forward Gupta remains confident there will be more large orders coming its way. “Most of the Euro-VI orders have come in, but we do see more large orders coming,” Gupta added. Gupta refused to share further details on these orders. In the long term according to analysts the company also likely to gain from orders for the West Coast mega refinery of 60 million tonnes which is at the planning stage.
 

There has been good progress on the policy front to increase activity in the oil and gas sector—a must for driving demand for equipment and services. Further, refining capacities of the industry increased at a fast pace since de-licensing in 1998,” McKinsey said in a report named India- Make in India hub for hydrocarbon sector.

The report added various initiatives including the Hydrocarbon Exploration and Licensing Policy (HELP), coupled with growing demand for energy in India, are likely to increase the level of activity in India’s oil and gas sector.
 

Gupta added the company has a healthy mix of domestic and overseas orders. “We have a target of Rs.250 crore orders from the foreign market for the current financial year,” he said.