Engineers India

Established in 1965, Engineers India (EIL) provides engineering and related technical services for petroleum refineries and other industrial projects. This is a PSU, with the government holding being as much as 90 per cent, followed by 6.12 per cent belonging to mutual funds, insurance companies and FIIs. Though the stress area remains the oil industry, it has gained experience in unrelated areas like road & transport, ports & terminals, power projects, water & urban development.

The growing oil and natural gas sector has seen a major contribution from EIL. It has been forward looking and not at all insular, to script joint ventures when required. As such, it entered into a strategic tie-up with Tata Projects for EPC projects in the energy sector in India. For executing similar projects in the UAE, the company entered into a JV with Tecnimont, Italy. Such partnerships were needed as the company has an overflowing order book amounting to over Rs 5,000 crore.

With the government intent on developing both road and port infrastructure in the country, EIL’s stature and performances will ensure it always gets a major chunk of the large orders pie.
The company’s track-record has been strong. During the previous fiscal it improved its functioning to the extent of posting a 77 per cent jump in net profit. Its operating margins also improved to 57 per cent compared to 36 per cent in the previous quarter. This enabled the company to declare a 185 per cent dividend for the 2008-09 fiscal. With a cash holding of Rs 1,388 as of March 31, 2008, the company has a cash ratio of 1.11, which will allow completion of projects on time.