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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
BSE 00:00 | 28 Feb 70.10 -3.15
(-4.30%)
OPEN

73.00

HIGH

73.00

LOW

69.60

NSE 00:00 | 28 Feb 70.00 -3.25
(-4.44%)
OPEN

72.45

HIGH

72.45

LOW

69.75

OPEN 73.00
PREVIOUS CLOSE 73.25
VOLUME 135083
52-Week high 128.60
52-Week low 69.60
P/E 11.20
Mkt Cap.(Rs cr) 4,430
Buy Price 70.10
Buy Qty 250.00
Sell Price 72.00
Sell Qty 1000.00
OPEN 73.00
CLOSE 73.25
VOLUME 135083
52-Week high 128.60
52-Week low 69.60
P/E 11.20
Mkt Cap.(Rs cr) 4,430
Buy Price 70.10
Buy Qty 250.00
Sell Price 72.00
Sell Qty 1000.00

Engineers India Ltd. (ENGINERSIN) - Chairman Speech

Company chairman speech

DearShareholders

It gives me immense pleasure to present to you the performance of yourCompany during the 54th year of its service to the Nation. I am happy to informthat EIL has maintained its position as India's leading engineering consultancy and EPCcompany and continues to contribute to the progress of the country by providing itsservices in the core hydrocarbons sector and for Infrastructure projects as well.

Despite a challenging business environment and intense competition EILhas posted a strong performance in FY 2018-19 in terms of new business secured raising theorder book to a new high.

During the fiscal year 2018-19 your Company has secured new businessworth Rs. 5891 Crores. This includes business worth Rs. 1495 Crores from domesticconsultancy ' 4305 Crores from domestic turnkey and overseas business worth ' 91 Crores.Major contribution in order inflows has been from Rajasthan Refinery Project of HPCLwherein the Company has secured both Consultancy contract for the main process complex aswell as Turnkey contract on Open Book Estimate (OBE) basis for Residual Utilities &Offsite (U&O) and associated works. In the International domain your Company hassecured number of major assignments including Additional PMC/ EPCM Services for new unitsin Dangote Refinery Nigeria PMC Services for Hail Full Field Development Project ofADOC Japan and Detailed engineering services for DM & Distillate Water inter-transfersystem for L&M stations for Jebel Ali power station complex of DEWA UAE amongothers.

On the financial front your Company has registered an Annual Turnoverof Rs. 2444 Crores. Profit Before Tax (PBT) and Profit After Tax (PAT) during the yearwere Rs. 567 Crores and Rs. 370 Crores respectively. As compared to previous financialyear 2017-18 the topline of your Company for FY2018-19 has grown by 35.70% while PBT andPAT have remained stable.

Your Company continues to make good progress in all its core anddiversified business segments.

In the upstream segment EIL secured assignment for design forutilization of waste heat from produced water for heating well fluid of ONGC Energy Centreand extension of consultancy services contract for the Life extension ofWell Head Platformof ONGC.

In the midstream segment EIL secured assignments for preparation ofDFR for pipelines for Rasayani complex of BPCL DFR for crude unloading and storagefacilities at Mundra of HMPL PMC Services for Balance Jobs of Dabhol LNGTerminal ofKonkan LNG Pvt. Ltd.

In the downstream hydrocarbon sector orders secured in the Refiningsector include Project Management Consultancy (PMC) for Rajasthan Refinery Project EPCMservices for Bio-Refinery project at Assam for ABRPL EPCM services for INDJET unit ofIOCLBarauni refinery DFR for expansion of Guru Gobind Singh Polymer Addition Project ofHMELand water consumption study for IOCL BPCL HPCL and CPCL refineries among variousothers.

In the Infrastructure sector breakthrough was achieved in securingSupervision and PMC services for High Speed Rail Terminal project at Sabarmati of NationalHigh Speed Rail Corporation Limited Gujarat PMC services for design of new campus forIIM- Nagpur EPCM services for development of Khajekhalan Ghat at Patna of IOCLEngineering Review and Procurement & Construction management services for Phase-II ofHP Green R&D centre at Bengaluru of HPCL and Independent Engineer services formodernization and restructuring of Delhi Airport of AAI among various others.

In the Metallurgy segment EIL secured assignment for preparation ofDFR for proposed brown field expansion of Smelter for NALCO Preparation of TechnicalAssessment Report for requirement of land water and power for NALCO's aluminiumdownstream project and consultancy services for assessment of land requirement forexpansion of Alumina Refinery of Vedanta.

Consolidating its international footprint EIL successfully securedvarious engineering and consultancy assignments in Middle East and Africa against stiffglobal competition. The new business secured in overseas markets comprises of variationorders from Dangote group in Nigeria for ongoing refinery project and also includesconsultancy assignments for both onshore and offshore projects in UAE and Bahrain. As aresult of its new initiatives for providing Training Services in the hydrocarbon sectorEIL was also able to secure training assignments in Bahrain under General EngineeringServices Agreement.

During the year EIL also completed the DFR Study for Grass-rootrefinery in Mongolia. EIL was also pre-qualified for providing PMC Services for thisproject. This project is being funded by the Government of India under Line of Credit toGovernment of Mongolia and it will provide a unique opportunity to support the 'Make InIndia' initiative.

This year witnessed number of critical projects completed by yourCompany and good progress was achieved on other ongoing projects. In the refinery segmentEIL successfully completed PMC services (Phase- II) for Revamp and Capacity EnhancementProject of BORL Refinery which aims to increase the refining capacity from 6.0 MMTPA to7.8 MMTPA EPCM services for Heat Traced Pipeline projects with associated facilities atMumbai & Kochi refineries of BPCL and Surge Analysis Study for Vadinar-Bina PipelineProject of BORL Madhya Pradesh among others. DFR for expansion of DFSU capacity from1200 KTPA to 1500 KTPA for HMEL was also completed during the year and project is inprogress.

During the year major overseas projects completed include DetailedFeasibility Study (DFS) for construction of an Oil Refinery Plant with a Crude Oil SupplyPipeline Project in Mongolia Engineering design services for BAPCO Bahrain DetailedFeasibility Study for LNG Regasification Terminal at Kutubida Island BangladeshFeasibility study of crude receiving facilities at Ruwais of ADNOC Refining UAEamongmany others.

EIL has made its mark in the Infrastructure sector by providing a widespectrum of services such as Project Management Third Party Inspection (TPI) QualityAssurance Independent Engineer and Lender's Engineer services Project Appraisal andProject Execution Services in some of the important projects of key clientele in thesector. During the year your Company completed PMC services for Headquarter Building ofUIDAI in Delhi Data Centre at Hyderabad for SBI Housing Project of Gujarat Housing Boardand Bhamashah State Data Centre Jaipur.

Good progress has been achieved in various assignments including EPCMservices of various projects including Distillate Yield Improvement Project at IOCLHaldia Refinery DHDT and supporting facilities project at Numaligarh Refinery of NRL andLPG Import facility at Haldia for BPCL among others. Construction works for BS-VI up-gradation project for nine refineries for various clients are in advanced stages ofexecution.

Significant progress has been made on various petrochemical projectsincluding Propylene Derivative Petrochemical Plant (PDPP) of BPCL Kochi Refinery LEPCMservices for 500 TPD Methanol Project and Associated Facilities for Assam PetrochemicalsLimited Namrup and EPCM services for GGSR Polymer Addition Project of HMEL at BhatindaPunjab.

EIL has developed an enviable track record in design engineering andexecution of cross-country pipelines for transportation of crude oil refined petroleumproducts natural gas and LPG across diverse geographies and demandingterrains.

Pipeline projects in progress include PMC services for Re-routing ofMumbai-Manmad Pipeline for BPCL PMC services for Replacement of KG Basin Pipeline forGAIL Modification/ Revamp of Vijaipur and Vaghodia HBJ/ DVPL system for GAIL and EPCMservices for Palanpur- Vadodara Pipeline and Mundra-Delhi Pipeline capacity expansionProjectof HPCL among various others.

As part of strategic investment in the Fertilizer sector EIL has taken26% equity stake in a JV Company M/s Ramagundam Fertilizers & Chemicals Ltd. (RFCL)along with NFL and FClL. RFCL has been formed to pilot the Revival of RamagundamFertilizer Project Telangana. EIL is executing this project on EPCM Mode. Good progresshas been achieved for this project which is nearing completion.

In Nuclear Power sector Detailed Engineering Consultancy andConstruction Supervision for setting-up Greenfield Nuclear Fuel Complex at RawatbhataKota Rajasthan is in progress.

EIL's new venture into Alternate Fuels - the Assam Bio RefineryProject has been making steady progress with initiation of various site activities.

As an organization devoted to continuous technology upgradation EILplaces utmost importance to R&D in order to enhance its operational capabilities.TheCompany is pursuingdevelopmental activities both inhouse and in collaboration withprestigious academic institutes like IITs and other R&D organizations like IOCLCSIR-IIP BPCL HPCL etc. Apart from these established R&D organizations EIL(R&D) has also been collaborating and cooperating with small companies to promote theinnovative ideas generated by them. During this fiscal the Company filed seven newpatents and four patents filed earlier were granted this year. With this the patentportfolio of your Company has augmented to 28 granted patents with 25 pending patentapplications.

As part of IT efforts of your Company the Online Human ResourceManagement System (HRMS) was successfully completed thus achieving the Company milestoneof MOU target. With this the HR system is end-to-end automated. Other IT projectscompleted in FY 2018-19 include ISO/IEC 27001:2013 Accredited Certification for theManagement and Operations of EIL's Primary Data Center (PDC) located at its Head OfficeEnhancement of Internet bandwidth by multifold to 200 Mbps and upgrading the existingend-point cyber security solution in line with the Government of India's cyber securitymandate. Your Company has also launched a state-of-the-art cloud- based Email System ofNIC with enhanced security performance and mailbox size thus enabling bettercommunication and collaboration.

EIL takes its sustainability mandate seriously and is conscious of itsrole as a responsible organization transparent to all its stakeholders. The Company'sproject designs support sustainability right from conceptualization to plant commissioningand subsequently the commercial operation. Energy efficiency resource optimization andsafety of plant personnel and society at large are the cornerstones of our businessoperation.

EIL has refocused its engineering philosophy and business models toachieve long term sustainable growth. It has also initiated evaluation and reporting ofperformance on the triple bottom lines pertaining to economic social and environmentalaspects. The sustainability initiatives at EIL shall definitely propel the organization onan upward growth trajectory.

Your Company has always accorded the highest priority to Health Safety& Environment (HSE) across its operations. EIL sustained its OHSAS 18001 (OccupationalHealth and Safety Assessment Series) and ISO 14001 (Environmental Management system)certifications by successfully passing through the third party audits during this yearwhich demonstrates our commitment to safety and sustainability. Apart from ensuringeffectiveness of the HSE Management system these certifications provide an edge insecuring business especially overseas.

EIL has received widespread recognition for its employee-centric workculture and dynamic HR processes. Human Resources of any organization play a crucial rolein overall organizational performance and quality of services that the employees deliverhas a direct bearing on the success of the organization. Your Company strives to develop amotivated workforce which is committed and aligned with the organization's strategic goalsand objectives. To ensure an enabling work culture and an engaged work force variouspolicies and development initiatives have been adopted from time to time.

At the end of FY 2018-19 your Company had 2768 employees including2339 professionally qualified employees. Approximately 2.24 % of our employees arelocated outside India operating in international work environments.

Your Company's CSR policy aims at creating a sustainable ecosystemthrough its activities for the community and environment. As per the Companies Act 2013 abudgetary allocation of 2% of the average net profit made during three immediatelypreceding financial years has been done in the financial year 2018-19 for CSR activities.

The Company's CSR initiatives cover a wide spectrum of activitiesincluding art and culture education healthcare drinking water and sanitation ruralelectrification women empowerment and skills training.

EIL supported the setting up of Mini Science Centre in 2 schools inRatnagiri district Maharashtra and setting up of a computer centre for underprivilegedyouth in Tughlakabad Delhi. EIL is also supporting the construction of Government SchoolBuilding in Kabennur Dharwad Karnataka. Your Company also conducted ten camps fordistribution of assistive aids and appliances to poor & needy Persons withDisabilities (PwDs) at various locations across the country.

EIL has supported the construction of 100 number of community toiletsin remote villages of Aligarh district and 32 number of school toilets along with potabledrinking water facilities in schools of Pataudi block of Gurugram district Haryana. EILalso supported the establishment of Skill Development Institute at Ahmadabad and providingoperational fund to Skill Development Institutes at Bhubaneswar Kochi GuwahatiRaebareli and Vishakhapatnam.

Your Company continues to contribute towards the flagship "Make InIndia" initiative launched by the Hon'ble Prime Minister with an objective to reviveand revitalize the manufacturing sector in the country. As part of the "Make InIndia" campaign your Company has been pursuing several initiatives includingencouraging indigenization vendor interactions to upgrade indigenous manufacturingtechnologies conducting regular supplier meets indigenization of equipment manufacturingto increase domestic content and vendor enlistment/ enhancement through continuousinteraction assessment and evaluation.

During the FY 2018-19 your Company won multiple awards and honours atthe national level which are a testament to the commitment and dedication of Team EIL.

The significant awards include the CII National Energy EfficiencyCircle Awards in two categories: "Energy Efficient Technology" and "BestEnergy Efficient Case Study" IEI Industry Excellence Award 2018 instituted by TheInstitution of Engineers (India) 6th Governance Now 2019 Award for"Excellence in Corporate Communications and Technology Adaption" PetrotechSpecial Technical Award 2019 for "Greening of Oil & Gas Business andSustainability" category jointly with IOCL Petrotech Special technical Award 2019for "Women Executive in Hydrocarbons Sector" among various other prestigiousawards.

Your Company is committed to good Corporate Governance as per therequirements of SEBI Regulations and DPE Guidelines in this regard. Your Company iscompliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015and DPE Guidelines on Corporate Governance to the extent compliance are within the ambitof EIL.

I am thankful to you for your continued support and faith in theCompany and look forward to your valuable feedback and advice. EIL management joins me inwishing you and your family lot of prosperity and good health.

J. C. Nakra

(Chairman & Managing Director)