Engineers India Falls 8% on Disappointing Q1 Earnings

Engineers India (EIL) shares fell as much as 8 per cent to an intraday low of Rs 216.3 on Tuesday as its net profit fell sharply in June quarter on account of lower revenue.

The state-owned engineering consultancy service provider reported a 29 per cent decline in its net profit to Rs 57 crore, hurt by lower revenues. 

Engineers India's revenue fell 10 per cent to Rs 391 crore against Rs 436 crore in the corresponding quarter of last fiscal.

Its Ebitda or gross profit declined 49 per cent annually to Rs 28 crore, hit by a fall of 520 basis points in its Ebitda margin at 7.3 per cent.

On the margin hit, Engineers India said, "In turnkey projects of the company, margins do not accrue uniformly during the year." 

Turnkey projects contributed 42 per cent to its revenues in the June quarter.

Engineers India shares ended 6.64 per cent lower at Rs 227.2 apiece, underperforming the broader Nifty, which closed 0.74 per cent.