You are here » Home » Companies » Company Overview » Engineers India Ltd

Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
BSE 00:00 | 18 Jun 81.05 -1.45
(-1.76%)
OPEN

83.00

HIGH

83.20

LOW

80.45

NSE 00:00 | 18 Jun 81.00 -1.50
(-1.82%)
OPEN

83.00

HIGH

83.25

LOW

80.45

OPEN 83.00
PREVIOUS CLOSE 82.50
VOLUME 373638
52-Week high 93.60
52-Week low 60.50
P/E 13.14
Mkt Cap.(Rs cr) 4,555
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 83.00
CLOSE 82.50
VOLUME 373638
52-Week high 93.60
52-Week low 60.50
P/E 13.14
Mkt Cap.(Rs cr) 4,555
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Engineers India Ltd. (ENGINERSIN) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to present to you the performance of your Company duringthe 55th year of its service to the Nation.

While the year was full of challenges both on operational and business fronts I wouldlike to inform that EIL with its dedicated manpower and unflinching commitment towardssustainable growth has maintained its position as India's leading engineering consultancycompany and continues to contribute towards the development of hydrocarbon andinfrastructure sector in the country.

The entire world continues to face an unprecedented health crisis in the form of theCOVID-19 pandemic. The outbreak has disrupted supply chains across all sectors andhampered economic activities globally. This pandemic is also adversely impacting thefuture demand projections which will have direct impact on short term business plans ofcorporates. Your Company on its part has taken number of pre-emptive measures whichresulted in achieving satisfactory level of efficiency and productivity during thesetimes.

With Government of India push towards reviving the economy with stimulus package closeto 10% of GDP and other proactive steps we are confident that consumer sentiments willimprove and new investments will boost the economy especially in Hydrocarbon sector whichwill give impetus to the growth of your Company as well.

Despite the challenging business environment and stiff competition EIL has posted agood financial and operational performance in FY 2019-20 in terms of revenue fromoperations and business secured.

On the financial front your Company has registered an Annual Turnover from operationsof Rs 3203 crores. Profit Before Tax (PBT) and Profit After Tax (PAT) during the yearwere Rs 675 Crores and Rs 430 Crores respectively. As compared to previous financial year2018-19 the topline of your Company for FY 2019-20 has grown by 30% while PBT and PAThave grown by 19% and 16% respectively.

During the fiscal year 2019-20 your Company has secured new business worth Rs 1617Crores. This includes business worth Rs 812 crores from domestic consultancy and overseasbusiness worth Rs 805 crores.

Your Company continues to make good progress in all its core and diversified businesssegments.

In the upstream segment EIL secured assignments for PMC Services for Installation ofGas Turbine Compressor at Gandhar; Technical Feasibility Study for Successful Operation ofLP Compressors at GGS- 4 Lakhmani & GCP Lakwa and Additional work under ongoing EPCMServices contract for Western Gateway Project Early Production facilities.

In the midstream segment EIL secured assignments for providing EPCM Services for CrudeOil Terminal (COT) at Paradip; Paradip- Numaligarh Crude Oil Pipeline (PNCPL) andNRL-Siliguri Product Pipeline (NSPPL); Consultancy Services for Design Engineering andTechnical Studies Supervision & Assistance for Crude Handling Facilities Project inGulf of Kutch off Vadinar Gujarat; Primary PMC Services for Balance Jobs of Dabhol LNGTerminal; PMC Services for Chhara LNG Terminal and PMC Services for LPG Cavern atMangalore.

In the downstream hydrocarbon sector assignments secured include Phase 1 of OverallProject Management and EPCM Services for 15 MMTPA to 25 MMTPA Capacity Expansion ofPanipat Refinery (P-25 Project) of IOCL; EPCM services for 60 KTPA Polypropylene Plant atGAIL Pata; PMC Services for Petro Resid Fluid Catalytic Cracker Unit along with SulphurRecovery Unit & Associated Facilities including Utilities & Offsites at MumbaiRefinery of BPCL at Rasayani; Study for Capacity Expansion of IOCL's Paradip Refinery from15 MMTPA to 25 MMTPA; EPCM consultancy services for setting up of Hydrogenated PyrolysisGasoline-2 Butene-1 and Pressure Swing Adsorption (PSA) units at Lepetkata for BCPL andvarious other small assignments including several variation orders.

In the Infrastructure segment EIL secured assignment from Petronet LNG for Owner'sEngineer (OE) services for Construction of PLL's new Office Building Complex at Dwarka inDelhi; additional work order from UIDAI for PMC Services for Construction of Data CentreOffice Complex & Residential Complex; an assignment from Department of Civil AviationGovernment of Goa for Technical Assistance related to Environmental Clearance for MopaAirport and assignment from Airport Authority of India (AAI) for assessment of completioncost of assets occupied by AAI at Kempegowda International Airport (BIAL) Bengaluru.

In the metallurgy segment EIL secured assignments for Consultancy Services &Construction Management for addition of 11th Rectifier Group between Potline-3& Line- 4 at NALCO's Smelter Plant at Angul in Odisha; Study report of JhamarkotraRock Phosphate Mine Udaipur Rajasthan and few other assignments including additionalwork under ongoing contract for Study of High Rise Structures Stability for AdityaAluminium Plant.

In the International markets this year EIL had a major breakthrough in Mongolia bysecuring first ever PMC consulting assignment for setting up a grass root refinery projectunder Line of Credit funding by Government of India to Government of Mongolia. Thisproject will provide a unique opportunity to support Government's Rs Make In India' and RsAtmanirbhar Bharat' initiatives.

Other jobs secured in overseas markets include Front End Engineering & Design(FEED) Services PMC Services Engineering and Training Services from clients like BAPCOADNOC and additional work orders from Dangote. EIL is also pursuing opportunities in otherterritories as well to augment its international footprint.

This year number of critical projects were completed by your Company. We are makinggood progress in other ongoing projects.

It's a matter of pride for your Company that during the year all the BS-VI fuelquality upgradation projects were completed and Oil Marketing Companies could achieve thetarget of supply of BS- VI specification Gasoline and Diesel from 1st April2020 onwards across the country. Other units in these refineries not linked to BS-VItimelines are under final stage of completion.

In the refinery segment EIL successfully commissioned DCU CGOT & LPG Treatingunit for Distillate Yield Improvement Project at IOCL Haldia Refinery West Bengal andcompleted PFR for West Coast

Refinery of RRPCL (Ratnagiri Refinery & Petrochemicals Corporation Limited) andDFR Licensor Selection and BDEP for few process units of Cauvery Basin Refinery projectof Chennai Petroleum Corporation Limited (CPCL) at Nagapattinam Tamil Nadu.

During the year major overseas projects completed include PMC Services for Al DabbiyaASR Gas Development Project of ADNOC Onshore UAE; Design Consultancy and PMC Servicesfor Miscellaneous Tank Farm Piping Instrumentation and Control System InspectionRepair Maintenance & Upgrade works at various depots of ADNOC Distribution UAE; PMCServices for Hail Full Field Development Project of M/s ADOC Japan among many others.

During the year the major assignments completed in the Infrastructure segment includePMC Services for Development of IIT Patna Campus Bihar; PMC Services for EstablishingCold Storage Facility at Guntur Andhra Pradesh; Consultancy Services for Review of TenderDocuments for Construction of PLL's Office Building Complex at Dwarka Delhi andConsultancy Services for Third Party Assessment for Dept. of Information Technology &Communication (DoIT&C) Rajasthan.

Good progress has been achieved in various assignments for Clients like Govt of Odishafor AMRUT Scheme; Central University of Punjab; Pune Municipal Corporation Maharashtra;PMC Services for Construction of NCR Biotech Science Cluster Phase-2 works at FaridabadHaryana; Engineering PMC for Development of Tourist Infrastructure Facilities in andaround Khajuraho Group of Temples Madhya Pradesh; Independent Engineering Services forDevelopment and Expansion of IGI Airport at Delhi for AAI among various others.

In the Petchem segment EIL competed Study for installation of Flare Recovery UnitLower Explosive Limit (LEL) detector Adequacy check Improvement of Utility System atGAIL Vijaipur Madhya Pradesh; Evaluation of suitability of new site for re-locatingRatnagiri Refinery and Petrochemicals Limited Maharashtra and Process development andBDEP preparation of Carbonation Process for Alkaline Waste water at GAIL Pata UttarPradesh.

Significant progress has been made in various petrochemical projects includingPropylene Derivative Petrochemical Plant (PDPP) of BPCL Kochi Refinery Kerala; LEPCMservices for 500 TPD Methanol Project and Associated Facilities for Assam PetrochemicalsLimited Namrup; Licensor Selection and Pre-project activity for Andhra PradeshPetrochemical complex at Kakinada for GAIL/ HPCL and Polymer Addition project of HMEL atGuru Gobind Singh Refinery (GGSR) at Bathinda.

Your Company has established an outstanding track record in design engineering andexecution of cross-country pipelines. Pipeline projects in progress include DFR forAdditional Crude Unloading Storage & Transportation Facilities at Mundra Gujarat ofHMPL; DFR QRA/RRA for Revamp of LPG Import Facility at Uran for BPCL; PMC services for18" x 45 km Re-routing of Mumbai-Manmad Pipeline for BPCL; PMC services for capacityaugmentation of Jamnagar-Loni LPG Pipeline for GAIL and EPCM services for laying of16" x 4.2 km pipeline from H2SO4 Tank of IOCL Haldia Refineryto existing IOCL jetty besides other assignments.

Your Company is leveraging its capabilities to tap significant business opportunitiespresented by the Fertilizer sector also. As part of strategic investment in Fertilizersector EIL has taken 26% equity stakes in a JV Company M/s Ramagundam Fertilizers &Chemicals Limited (RFCL) along with NFL and FCIL to revive the erstwhile Fertilizer plantof FCIL at Telangana. EIL is executing this project on EPCM Mode. Pre-commissioningactivities are in advance stage of completion and project is expected to be commissionedby Q3 FY 2021.

EIL is making promising in-roads in the Nuclear power sector as well. DetailedEngineering Consultancy and Construction Supervision for setting-up Greenfield NuclearFuel Complex at Rawatbhata Kota Rajasthan is in progress.

In the Alternate Fuels segment your Company is providing EPCM services for Assam BioRefinery Project of M/s Assam Bio Refinery Pvt. Ltd the first of its kind plant in India.Design Engineering and Procurement activities for the project are in progress.

EIL takes pride in being a technology-driven company and being one of the fewengineering consultancy organizations that have a dedicated Research and DevelopmentDivision boasting of developing more than 35 commercialized process technologies. Duringthis fiscal the Company filed five new patents and four patents filed earlier weregranted this year. With this the number of Rs Live' granted patents stands at 31.

Your Company continued to make advances in providing high-tech IT enabled services toits mainstream activities by developing/ implementing IT solutions to deliver betterquality services with emphasis on increased efficiency and improved productivity.

In March 2020 the COVID-19 pandemic and resultant Lockdown demanded"work-from-home" concept. Support teams were mobilized to provide hand-holdingto users to adapt to new way of working. Online system was developed to integrate theexisting procedures which helped in seamless data flow for engineering activitiesHR-systems F&A system as well as procurement system.

Automation and achieving a paper-less office were other focus areas. A new IntegratedInvoice Portal has been implemented and integrated with Bill tracking System (for In-house& LSTK) and Vendor Accounting System. This Portal provides e-uploading of VendorInvoices to expedite/ view Status of Invoice payments. Integration of MSME payment statusreporting has been implemented as a part of this system.

Your Company has kept sustainability at the heart of its business philosophy andstrives for compliance to environmental regulations norms and sustainable developmentgoals which make your Company a responsible organization transparent to all itsstakeholders by addressing the local and global issues. Right from conceptualization toplant commissioning and subsequently the commercial operation sustainability is inbuiltin our thoughts and actions.

EIL transitioned its Health and Safety Management System from OHSAS 18001 to ISO45001:2018. Now EIL HSE Management System is certified with ISO 45001:2018 (OccupationalHealth and Safety Management System) and ISO 14001:2015 (Environmental Management system).On the operations front Company has put in place Emergency Preparedness and ResponsePlans (EPRP) across all its office locations to secure the safety of its employees andassets.

Human resources are vital for any organisation to achieve sustainable performance inthis dynamic environment. The Company values its human resources and is committed toprovide them with an enabling environment which motivates facilitates their growth andrewards them for their contributions. To ensure an enabling work culture and an engagedwork force employee-centric policies and development initiatives have been adopted fromtime to time.

As on March 31 2020 EIL has 2806 employees including 2409 professionally qualifiedemployees. Approximately 3.31% of our employees are located outside India functioning ininternational work environments.

EIL's CSR policy aims at creating a sustainable environment through its activities forcommunity and environment. Budgetary allocation for the projects has been done in linewith Govt. guidelines.

Across states EIL is involved in development of Infrastructure as well as theirmaintenance under CSR activities. The Company's CSR initiatives cover a wide spectrum ofactivities including art and culture education healthcare drinking water andsanitation rural electrification women empowerment and skills training with specialemphasis on the CSR theme announced by the Government each year and the Aspirationaldistricts.

Your Company supported the setting up of permanent campus of Skill DevelopmentInstitute at Bhubaneswar and providing operational fund to Skill Development Institutes atAhmedabad Bhubaneswar Kochi Guwahati Raebareli and Vishakhapatnam.

During the year EIL came forward to provide much needed succour to its countrymenduring times of natural disaster and pandemic. In the aftermath of devastation caused byCyclone Fani EIL contributed to the cyclone relief fund to rebuild education community& health infrastructure in the affected regions. EIL also contributed to PM CARES fundto support the Government in its fight against COVID-19.

Your Company has been continuously engaged in the process of creating an ecosystemconducive to the growth of Indian industry by promoting import substitution andself-reliance under the aegis of Ministry of Petroleum & Natural Gas. The indigenouscomponent in the capital goods industry catering to the refinery segment was about 10-15%in late seventies/ early eighties. This rose to the current level of 85-90%. Similarly inthe petrochemical and gas processing sector the indigenous component has grown fromalmost negligible to close to 60%. This has been the power of EIL's contribution to theindigenization efforts of the Government by supporting and developing capabilities andcapacities of Indian manufacturers.

As part of Make In India and Atmanirbhar Bharat campaigns various initiatives arebeing taken by EIL like encouragement to indigenous manufacturers to enhance theirproduct portfolio and manufacturing capabilities and capacity in collaboration with theirforeign principals. EIL has also introduced certain new policies in Vendors EnlistmentSystem for ease of registration of vendors.

During the FY 2019-20 your Company won multiple awards and honours at national levelonce again showcasing the spirit and dedication of Rs Team EIL'.

The major awards include Corporate Awards 2019 in Rs Best Growth Performance -Engineering Projects/ Capital Goods category' by Dun & Bradstreet First Prize in theRs Energy Efficient Technology Provider and Impact created' category in 3rdNational Energy Efficiency Circle Competition by CII Special Commendation in the categoryRs R&D Company of the Year' during Downstream India Excellence Award 2019 Rs IndustryExcellence Award 2019' by the Institution of Engineers (India) and 7th PSUAwards in four categories - Rs Research and Innovation Strategic Investment Leadershipand HR Excellence' by Governance Now.

Your Company is committed to good Corporate Governance as per the requirements of SEBIRegulations and DPE Guidelines in this regard. Your Company is compliant with SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 and DPE Guidelines onCorporate Governance to the extent compliances are within the ambit of EIL.

I am thankful to you for your continued support and faith in the Company and lookforward to your valuable feedback and advice. EIL management joins me in wishing you andyour family lot of prosperity and good health.

J. C. Nakra

(Chairman & Managing Director)