Engineers India receives order worth Rs. 5,000 crore

The state-owned construction firm, Engineers India (EIL) has secured its largest order ever of worth Rs. 5,000 crore. The company bagged this order from HPCL for execution of Rajasthan Refinery Project.

The company informed the bourses that it would execute this order under two separate contracts, namely, PMC Services for Execution of Rajasthan Refinery project (RRP) and Execution of Residual Utilities & Offsite for RRP on Open Book Estimate (OBE) basis. This order is likely to be executed over the next four years.

As on Q1FY19, the Engineers India held a strong order book of Rs. 7,229 crore on a standalone basis, out of this 53 per cent orders are attributed to consultancy and rest to turnkey projects. This order book translates book-to-bill of around 3.6x on TTM revenue which gives healthy revenue visibility for the next 3 to 4 years. With this order for execution of Rajasthan Refinery, EIL’s order book has now become further strong.

However, in-line with the negative market sentiments which overhang the stock market, the stock of EIL fell on Monday. The stock of EIL opened at Rs. 122.3 apiece, but later fell almost 7 per cent to touch an intra-day low of Rs. 109.5 apiece. At 11.10 hours, the stock of EIL was trading at the negative mark of Rs. 114.4 apiece, down by 3 per cent.