>Engineers India Limited (GEOJIT)

# EIL, 90.4% owned by government, has reported very fantastic performance for Q3 FY 2009. Net Sales more than doubled to Rs. 528.5
crore (Rs. 177.5 crore) led by substantial jump in Lump Sum Turnkey (LSTK) turnover of Rs. 286.95 crore (Rs. 28.35 crore). Consultancy
& Engineering business also reported sharp 62% jump in sales of Rs. 241.52 crore (Rs. 149.1 crore). OPM% however declined to 23.6%
(27.4%) due to change in sales composition more in favor of lower margin LSTK business. Nevertheless, strong sales growth coupled with
150% spurt in other income of Rs. 43.2 crore (Rs. 28.8 crore) resulted in PBT (before extra ordinary items) more than doubling to Rs.
165.4 crore (Rs. 75.2 crore). However, after accounting for provision for gratuity liability of Rs. 60.56 crore restricted growth in PAT of Rs.
68.9 crore (Rs. 50.2 crore) at 137%.
# For 9 months FY 2009, net sales zoomed to Rs. 1,124.9 crore (Rs. 494.9 crore). OPM% dropped to 20.6% (25%). PBT skyrocketed to Rs.
339.7 crore (Rs. 206.5 crore). Extra ordinary expenses of Rs. 60.56 crore dragged down growth in PAT of Rs. 185.7 crore (Rs. 137.9
crore) to 35%.

To see full report : EIL (Investment idea)