Engineers India nears 52-week high after Q1 profit soars 50%

The stock rallied 6% to Rs 245 after the company reported 50% YoY jump in net profit at Rs 80 crore for Q1FY17.

Engineers India has rallied 6% to Rs 245 on the BSE after the company reported 50% year-on-year (YoY) jump in net profit at Rs 80 crore for the quarter ended June 30, 2016 (Q1FY17), despite fall in operational income. The state-run company had registered a profit of Rs 53.51 crore in the same quarter last year.

The company’s operational revenue during the quarter under review however, declined 13% to Rs 342 crore from Rs 391 crore in the corresponding quarter of previous fiscal. Total expenditure fall 25% to Rs 274 crore on YoY basis.

Ebitda (earnings before interest, taxes, depreciation and amortisation) profit more than doubled to Rs 73 crore from Rs 35 crore, margins improved to 21.4% in Q1FY17, up from 8.81% in the same quarter last year.

The stock is currently trading near to its 52-week high of Rs 252 on the BSE, touched on January 1, 2016 during intra-day trade.

The trading volumes on the counter jump an over three-fold with a combined 3.03 million shares changed hands on the BSE and NSE till 11:05 am.