Engineers India (NSE:ENGINERSIN) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to the IEL Q1 Results for FY 'twenty six 'twenty seven. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Kishan Muthra from DAM Capital. Thank you, and over to you, sir. Hi. Thanks, Ananya, and very good afternoon to all of you. Thanks for joining in. So today, we have with us the entire management team of Engineers India to discuss the Q1 FY 'twenty seven results.

0:51 And post that, we'll follow that up with the Q and A. So from the management, we have with us Mr. Sanjay Jindal, who is our Director of Finance Mr. Svendu Padi, who is the Company's Secretary Mr. Aarti Bhatra, who is Executive Director Mr. Vivek Mehta, the chief general manager, marketing and business development Mr. Amanti Chopra, who is the senior general manager and Ms. Neha Narula, who is the senior manager. With that, I will now like to hand over the conference to the management for the opening remarks. Over to you, sir. Thank you, Mr. Kishan. Good afternoon, everybody, and a warm welcome to all the members from Press Fraternity to Investors. We have declared our first quarter results for the financial year twenty six-twenty seven yesterday, that is on thirtieth thirteen August twenty twenty six.

1:45 Company order book position stands at INR 14,424 crore as on 06/30/2026, which comprises consultancy segment of rupees 10,498 crore and segment constitute of rupees 3,926 crores. Order inflow in the year during first quarter of financial year twenty six-twenty seven stands at INR $5.14 crores. With respect to the financial performance for the quarter ended 06/30/2026, on a stand alone basis, the company achieved profit before tax of INR 145 crores in comparison to rupees 94 crores during the first quarter of financial year twenty five twenty six, showing an increase of 55% approximately.

2:44 Further company also achieved profit after tax of rupees 109 crore in q one of financial year twenty six twenty seven, which is rupees 70 crore in the quarter one of financial year twenty five, twenty six, showing an increase of 55% across. Operating margin during the first quarter of twenty six, twenty seven stood at around 14%. That is rupees 108 crore as compared to 7%, that is 59 crore during the quarter ended June 25. EBITDA of the company as on 06/30/2026 stood at rupees 155 crores with EBITDA margin of 18.55% in comparison to the rupees 104 crores EBITDA margin, 11.72% as of 06/30/2025.

3:47 Further company achieved a turnover of INR $80.01 crores compared with INR $8.57 crore achieved during the first quarter of financial year twenty five-twenty six. The consultancy and engineering segment recorded a turnover of INR $4.99 crore during the quarter compared with INR $40.08 crore in June 25, representing a growth of approximately 22%. Notably, the Consultancy and Engineering segment has a higher profit margin as compared with 2017. The 2017 segment recorded a turnover of INR $30.02 crore in June 26 compared with $4.49 crore in June 25.

4:37 The decline is primarily attributable to capturing of certain major projects. However, the company has achieved new orders in the Tanki segment over the last few quarters. These projects are currently in the initial phase of execution and are expected to gain momentum in the coming quarter. As execution progresses, the turnkey segment is expected to increase during third quarter and fourth quarter of FY twenty six, twenty seven once these projects reaches their planned execution pace. On the consolidated basis, the company earnings profit of rupees 157.94 crores for the quarter ended 06/30/2026 in comparison to rupees $65.5.4 crores earned during the first quarter of financial year twenty five twenty six. Therefore, there is increase of around 141% in the consolidated profit on year on year basis.

5:44 The profit of ERC has increased to 6.8 crore... 88 crore in the first quarter of financial year twenty six twenty seven as against rupees 2.67... 2.69 crore in the first quarter of financial year twenty five twenty six increase... With the increase in margin around 155%. The profit from joint venture or associated contributes rupees 42.51 crore in the consolidated profit while there was loss of 7.37 crore from the joint venture in the Q1 of last year twenty five. Now I hand over to Mr. Kishan, call center. Thank you.

6:41 Operator, you can begin the question and answer session. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Good afternoon, sir. Thanks for the opportunity. My first question, sir, can you just help us with the granular details of the domestic consultancy order prospect, international product order to the extent possible?

7:35 And are you still confident of meeting the order inflow target of INR 80,000,000,000 for the fiscal? And out of INR 80,000,000,000, how much do you expect to be consultancy orders? Good afternoon. This is Vivek from Marketing and Business Development. With respect to the current business inflow, as of today, we are sitting at $2,727,150 crores worth of business, and out of which thousand around 1,100 is from the overseas and rest is from the domestic segment. So that's the current situation. And definitely, when we have talked about the INR 8,000 crore, we are going to touch upon that. We have not changed the... Our outlook for the for the financial year. We're just two quarters... Almost two quarters down, but still we have two quarters to gain and many of the projects which we are discussing across the world are there in discussion as well as some of the projects in India also concerned. We are very hopeful that we should be able to meet the target of it all.

8:41 We'll in fact try to cross the And, sir, out of 2727... Two seven five zero crore, how much is the consultancy as of now? The consultancy is in the range of... Just a sec. That's... Out of 1,500 crores, which is the which is the domestic business, around 523 is the consultancy. 27. 27. Oh, sorry. Out of $275,027.50, we have 1,100 is approximately the consultancy. 1,100 is 1,100 is the overseas.

9:28 As of the left out is the domestic, and domestic, we have approximately 1,500 crores is from the LSTK, and that's just from the consultant. And, sir, second question is on The Middle East, of course, we had opened. I think we're qualified with Aramco for bidding for consultancy projects. Can you just let us know how the things are progressing? And are we... And do we expect anything material to get finalized in the Cisco? In The Middle East, you know, the market situation is still very grim. Nothing is stabilized. Still there's not much is happening on the new project side. Some repair and modernization projects are still on. In that environment also, we have been able to secure more business for INR 500 crores from the our Abu Dhabi office as well as from the other clients in The Middle East.

10:26 But with respect to the Saudi, Saudi, we are still waiting for some of the good opportunities from them and some of the business to come from them. We are still in the initial stages of discussion with them. The contract is already on. We are waiting for certain inquiries to come. As you know, that there is a... There has been a... This this situation, the new inquiries are a little bit slow from their side. Understood, sir. Thank you. Best of luck. Thank you. Thank you. Thank you. The next question is from the line of Deep Sanghi from Dallaan and Broker Stock Broking Private Limited. Please go ahead. Yes. Thanks so much for the opportunity, and congratulations on a good set of numbers. So my first question was regarding the write backs or change orders. So for this fiscal, are you expecting any write backs or any change orders?

11:19 So if if you look at in June 26, there was a project to which got commercialized. So you for that also, will the write back will come this fiscal or next fiscal? In the current quarter, there is no additional change order, which is included in the term notes, and we are not expecting any write off as such. Sir, sir, we write back in this whole fiscal, are you expecting? No. The voice is not clear, actually. Sir, so I was asking, are you expecting any write backs, the provision write backs for the No. We are not we are not expecting any write back of provisions.

12:13 The provisions kept guarantee and warranty are write off as per accounting standard and as completion of project solving. Okay. So the... Sir, because in June 26, the HPCL project got commercialized. So that's that's what I was asking. But we have defect clarity period also. After completion of defect clarity period, all the provisions are reversed. Okay. Okay, sir. And, sir, my next question was regarding the consultancy growth rate. So Okay. If you if you see the... In the q one FY twenty seven, the consultancy growth rate was just two percentage despite a very, like, big order backlog. So should we... Like, how should one assume the full year's growth rate taking into account the the big order book for consultancy?

13:05 Order book? No, sir. If you are talking about the order book execution, you're talking about? Yeah. So I'm talking about basically the revenue growth rate for consultancy. Revenue. Revenue growth rate. Definitely, we are targeting... In the last year, we were having total turnover of 3,850 crores. This time, we are targeting at least 10% growth, and we are keeping close watch on the progress of the projects. So this guidance can be improved in the coming quarters also, and we are expecting around more than 50 from the consultancy too. Okay. More than 50%. Yes. And, sir, because...

13:50 So my quest... Question was regarding... So so the execution rate, if you see in consultancy has been in the range of around 30 percentage, which was, again, 27 percentage last year. So how will the execution rate be? If you can just throw some light on that. Last year, our consultancy portion was 48% in the total term loan. Yeah. Correct. Yeah. It was not 23%. No, sir. I'm I'm talking about the execution rate. So from the closing order book, how much part of Understood. See, this is a... The execution rate which you are talking about is a cyclic in nature. It depends on Okay. What stage of the project is. So it varies slightly from year to year basis.

14:37 Okay. So, sir, is... So, again, my question is Our total, basically, whatever jobs are being shown in the order book, these projects are... Mega projects are typically completed in four to five years. And mid range projects are completed in two to three years. And some of the studies, like, DFR studies and some fee type projects, study type projects, and that projects are completed in one year itself. So Okay. Basically, it depends on the job, whether it is mega job or mid size job or small job. Alright. What point of time in the financial year it is received? Like, let me give you an example. Right. So we got a mega project in the month of towards the end of January.

15:26 So we'll not have much of execution in that financial year. Right. Execution will mostly find in the next financial year. But if you calculate the percentage, that will just find the figure. Right. Right. Right. Okay. Okay, sir. Sure. No problem. Thank you. I'll come back in the question. Thank you. The next question is from the line of Janam Jan from DAM Capital. Please go ahead. Thank you for the opportunity. So my first question is, given a strong consolidated order book and a book to bill ratio, how are we seeing the gross margin growing going forward? Segment. Segment? You are talking about the segment profit. Already, if you see in the last year, our segment profit was 17% in the first quarter of twenty five, twenty three. But in this...

16:21 In the current quarter, it rose to 24%. So gross margin had been improved in the consultancy job. And in the LSTK margin is also improved, and it is currently seven and a half percent in the first quarter of our current financial year. Okay. We are sure to keep 24, 25% segment profit in the consultancy segment. Okay, sir. So second question is, how are you seeing the things moving in the nuclear segment? What? Can you just repeat How are you How are you seeing the things moving in the the nuclear segment? Nuclear. Nuclear on...

17:06 You know, that this government has started pushing on the nuclear, and a lot of has come after this almost crisis and all. So we have seen a lot of inquiries coming from the nuclear side. In fact, we are doing various environmental studies at this point of time. These projects we are doing for a... From a private investor, and one is from from the government side also. We are doing environmental studies. So these are the projects on the at this stage. And there are certain... You are also there in the market. We are also engaged with the for some of the consultancy assignments at this point of time also, engineering consultancy assignment. You also know that we we had last year secured the SMRs... SMR projects from NPCL and other clients. So nuclear is now... Is on the push.

17:52 Let's hope for the rest. It goes fine. Okay, sir. So my last question is, sir, in terms of the revenue contribution, the consumption order revenue mix has been... Has increased to about 60%, which is to be a near stand around 48, 45%. So how... What sort of revenue mix are we expecting from the consumer side going forward in FY twenty seven or FY twenty eight? In the financial year... Well, current financial year, we are expecting more than 50%, but definitely around 50 to 60%, we are still expecting from the consultancy segment, and balance will come from the LSTK country segment. Okay, sir. Good. I'm just asking. Thank you so much. 505055% is at least bigger.

18:38 Okay. Yeah. Okay. Thank you. Thank you. Thank you. The next question is from the line of Hardik from Lark. Please go ahead. Sir, because of the Middle East conflict, have any of the clients put their project on hold as of now? Sir, as such, by saying of it, they don't say anything you've been holding. In fact, you won't even see the damage has happened anywhere. These days, you don't see any kind of news. But there's... There there is a problem there. The new projects are not coming very fast. The new tenders and new projects are not coming very fast. We have got through the assignments, PMC assignments under the existing select... Our our long term agreement with them as more than 500...

19:30 400 crores worth of assignment, which we have got from The Middle East. But there is an impact, definitely. But nobody's publishing that it has been on hold. On routine basis, we are getting jobs from The Middle East. Yeah. Okay. But any No. You make up projects are in our home. Yeah. Yeah. Yeah. That's what I wanted to understand. Any existing in the project in the client is not officially saying, but as of now, it has to let... Let's not proceed now and we'll see kind of a scenario. Wherever we are working, those projects are on. All the existing projects are They have not stopped then. They have not stopped. But new mega projects, we have not seen much. Okay. Okay. Okay. And what about the impact in India, sir? Because of the current financial position of the oil marketing company and this thing, has the Middle East war had any impact on the India business as such?

20:28 Yes. Exactly. We have received order of With respect to the more than 500 gold from the Middle East region itself. Okay. In this quarter. In this quarter. In quarter. This quarter only. Yeah. I got it, sir. Now I'm asking what is business. Overall, what do you see the impact of all of the All the major projects which we are having are on progress path. There is no disturbance to the existing Indian projects. And also, sir, the CapEx investments of the... On the ONCs are in place and going ahead Yes. That's what I wanted to know. Thank you so much, sir. Thank you, sir. That's it. That's what I wanted to know. Thank you, sir. Thank you.

21:14 Thank you. The next question is from the line of Shivam Bhuraji from ICICI Securities. Please go ahead. Hi. Thanks for taking my question. My question would be, can you please touch upon core diversification opportunities in consultancy? And are you seeing improvement in order pipeline in that segment? The government... As soon as the government has revised this policy and they have said that they will be giving GAAP funding of 34,000 crores. Many inquiries are there with respect to putting up the feasibility study. So we are bidding for those ones at this point of time. In any case, full classification, we are doing one project for and for NTC, which is from gas to SNG.

22:07 This we are doing right now. And many of the projects which we are in the bidding stage. So these will be realized in couple of months. We'll get to know the results of those because these are under negotiation and. But there are definitely more inquiries on coal gasification at this point. Okay. That was it from my side. Thanks. Thank you. The next question is from the line of Deep Sanfi from the Lalam broker of Stoke... Broking Private Limited. Please go ahead. It is a follow-up question. Yeah. Thank you so much for taking my question again. So so my first... My question was regarding the the RFCL.

22:52 So if you see, even this quarter, they have almost 42 crores of revenue, which was, I think, the last q three and 02/04, so they got the similar... The range. So is this cons... Can this be considered, like, sustainable, this kind of profit? Yes. Our actual project is running well, and now we are expecting this kind of profit on regular basis. So And we are Yeah. So we are expecting some kind of dividends in the current financial year also. Okay. Sir, in the in the last con... Call, you also said that there will be some smaller kind of...

23:40 There, ma'am, like, technical thing you have to do in December as well in that? That that will be done, but if that will be done during the regular shutdown period, and there will not be impact on the probability of the project. Okay, sir. Generally Yeah. Generally, plants... Such kind of fertilizer plants are run for three hundred thirty days in the financial year. So within that window of thirty five days or thirty days, which is kept for the regular shutdown period, during that period, all the activities will be carried out so that regular profitability will not be hurt. Right. Okay, sir. And another question was that...

24:29 Was regarding the the major projects which are... Which will be coming this year. So one is BPCL Andhra, IOC of Garibi, and another one is ONGC. There's some petrochemical plant. Right? So where do all of these projects stand right now? And when could we realistically see, you know, that... Them coming into the order net flows? The key order... The on. They are now maybe anticipating towards the side development activities and all. So probably the execution tender would come towards the end of this financial year. So if it is settled before the financial year, then depending on the competition, if we get it, it will come within this financial year. Otherwise, it's early next financial year. First quarter, it should be reflected.

25:19 But on the ONGC part, we're still not listing anything. Feasibility study is on, and it's just in the process. But it is it is going to take time. Okay. And, sir, what about IOCS, the parallel, like, phase two? I think, pilot phase two is, again, it's under their approval. It is... Their management has to take a call. We have not anything heard from them also. The phase one is completed, and that's... They have to decide. There were certain land issues and all that. We understand that they are trying to settle, and then this project for the phase two will start. Right. And, sir, even with... Like, without... If they don't contribute to the other interest, still we will reach the 8,000 crore mark. Like, I will continue with It's not only those projects which we target. We target number of projects. We don't focus on it on those two.

26:15 Of the projects is cannot disclosed at this point of time. We keep on discussing, so you can see something coming there. Right. So can you also talk about the pipeline? If you can please throw some light on that. On the pipeline side? Yeah. Really? Are you talking about the pipeline? Sorry. On the pipeline side or projects you're talking about or the order pipeline? Yes, sir. The order pipeline. Which, like, which kind of projects are you targeting? Like, for Because the both. It is... I'll tell you that now we are targeting hydrocarbon is just. Hydrocarbon primarily, the project, whichever are going to come. Those are there. We are also focusing on nuclear. I told you in the earlier call... In the earlier question also that nuclear, there are a lot of inquiries which are coming in the market. We're already doing EIA's environmental impact assessment studies.

27:11 We are moving towards coal classification. Also, a lot of coal and specification inquiries are there. Even though they are in the initial nascent stages, infrastructure, you know, is is a very good segment for us. We have just got a major assignment in the data center from PowerTel. So similar kind of projects which we are targeting apart from hydrocarbon also. We have a lot of opportunities in this segment also. Right, sir. And just a... Sorry. Just a last question regarding the infrastructure. So the... Mostly, the infrastructure projects are mainly in the kind of the LSTK job. Right? Or Yes. It it is a mix, actually. It is a mix. Somewhere, is project management services. Somewhere, we get those assignments as an OB under the OB OB. Or somewhere, like, on the depository mode. So it's always mixed. But last couple of years, more of them are coming on the... The major ones are coming on the list OB basis or or the deposit rate. There are PMC assignments also. Those those are smaller in size. Smaller ones. Okay.

28:11 Okay, sir. Okay. Thank you. Thank you. The next question is from the line of Jayesh Gandhi from Harshad Gandhi Securities. Congratulations on good set of numbers. Just a couple of questions from my side. I want to understand the progress on the order in Nigeria. If I'm not wrong, revenue recognition there is going to be on percentage of completion. It's a progress percentage. Cost progress business. Cost progress business. Okay. And since the project is, like, three to four years Yes. I mean, revenue recognition... I mean, revenue will be recognized. You know?

28:57 I mean, it would be, like, front funded... Front loaded or back loaded? I mean, if you can give any picture on that. It is never on the front loaded or back loaded. It's depending on the progress process. Basically, the note will be recognized based on the cost progress achieved during the quarter. If it is 10%, then the note will be 10% of the contract value. If cost progress is 20%, turnout will be on cumulative basis, 20% of the contract value. So this is the mess. So all turnout will be booked within, I think, four years four years span of time. Got it. And, sir, do we do we see any opportunity in this deepwater drilling in the the project which which government has recently announced?

29:52 Sir, we are not into the drilling part of it. We get involved in the offshore segment. We are involved when the oil is out, in the processing of the oil. So we are not into deep drilling or deepwater drilling and all in that segment. Got it. And one last question is, since currently the order mix is more directed towards the consultancy, do you think this is going to be... I mean, will it be the strategy of the management to keep keep consultancy in the mix higher, or it's going to be as the orders we will... I mean, there's no strategy as such. Whatever order comes, we'll take it. Definitely, it is the strategy of the company to keep consultancy business on our side since we are having margin...

30:42 Strong margin in the consultancy segment. So management, the first are always there to give... To grab the consultancy business first. Got it, sir. Thank you. Thank you for sharing your views, sir. Good luck for you, sir. Okay. Thank you. The next question is from the line of Kunal Patia from Dallal Broker. Please go ahead. Yes, sir. Thank you so much for the opportunity, and congrats on a good set of numbers. Sir, I just had one one or two clarifications. Sir, in case of consultancy, you did mention that the growth targeted for the year is approximately 10 odd percentage.

31:28 So... But, however, looking at our, say, first quarter sort of a run rate, we could do approximately around 200 odd crores on a full year basis. That, in fact, is a higher growth rate vis a vis what you have been talking about. So, sir, just wanted to get a sense, like, even if we consider a 10,000 crore order book, which we have in case of consultancy, and we take a 20% kind of an execution in the current year out of that, we would be almost at around 2,000 odd crores of total top line in consultancy. So is that the right number or directional right number to work with? Just wanted to get your thoughts on that, sir.

32:15 Yes. We have already given a target of more than 10% in the increase in the term, which is in the total term, which takes around 4,200 gold. And we are expecting more than 50% turnout from the consultancy segment as I have already said it may be around 55% also. So, definitely, our consultancy segment or not will be more than 2,004. It will be around 23 and 2,404. So you are on right path, sir. Okay. Okay. So meaning consultant queue could have a higher growth rate? Yes. Consultant Q will be higher higher than LSL. Okay. Okay. And, sir, secondly, you did talk about coal gasification as a new segment opening up.

33:08 And from our previous conference call, we... What we understand is normally a coal gasification coal gasification kind of an order could be anywhere close to around 10,000 to 30,000 crores in terms of the overall order size. So so out of that, EIL could get what percentage for, say, a consultancy slash donkey or any other order? Right. It's like this. It depends on the kind of service we are going to offer. Many of them... Many of these school classification projects are at the feasibility stage at this point of time. They are submitting the study to get the funding from the government, and then probably towards the end of it, they will realize, and they will go for the implementation. So typical consultancy for us remains in the same zone only, which we get it from any hydrocarbon. Doesn't matter to us whether it's hydrocarbon and all.

34:00 So we target the same kind of business from them, whether it is on the PMC mode, EPCM mode. Mode of execution of these projects remain the same. Okay. So probably our average has been around three to 5%, so one could work approximately with that? So you can guess guess estimate from the past progress, what the past past in the consultancy is almost Okay. Okay. And, sir, the 5,000 crore revenue target, FY '28, we maintain that or we would be escalating on that? We are still maintaining that, and definitely, we will try to improve it. Yeah. Okay. Okay. And as a final question from my side, so you did give some glimpse on the areas of business such as hydrocarbon, nuclear, environmental, coal gasification.

34:56 So... But if a ballpark, one wants to understand what would be your pipeline in terms of the bidding you have currently in terms of an approximate ballpark number? How much would that be, sir? Sir, these projects are multimillion dollar, multi growth projects. Right? Difficult to tell. Very difficult to tell which segment, how much we are going to bid. We want to bid for everything, whatever we can. Because when you bid for 10 projects, you can get one. I mean, it it all depends on the competition in segments. So it's very difficult to tell what is the the total business for which we'll be bidding. Okay. And, sir, finally, sir, in terms of competition, do... Like, for us, the competitive intensity would be quite low vis a vis any other industry.

35:48 So with that in mind, what what would be, say, a success ratio we could work with? But who said the competitive intensity is less? It's competitive and competition intensity is very high in all the segments, wherever we are working. All the assignments which we are getting is mostly on the competitive business, including the public sector. They are they are there... The consultants are there in those segments, and we have been able to get the assignments from them in competition. Okay. Okay. Fine, sir. Thank you, Rob. Sir. Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi, sir. Good afternoon. Thank you for the opportunity.

36:38 Hi, good afternoon. Hi. So first question on the Aramco agreement, which you spoke about last time. Any development on that front? And second, because of The Middle East, probably we have some 1215% exposure there. You were kind of cautious in last quarter in terms of guidance. And this time, you have suggested that probably the guidance can upgrade. So just wanted to understand that since the war is still continuing, what is your thoughts on that as a company? Are we on track? Or still there are some concerns on the execution? And second or first was on the Aramco agreement. Yes. On the side, we are still to get something from them.

37:26 We are still in the initial stages. We are... We have not got any major inquiry from them because I told you not many of the projects have been slowed. They have they have been in there's there's a slowdown on the new project, which they're not issuing. So if something starts, then it will come under those inquiries. And this will respect to the general guidance about the Middle Middle East, you have a situation which is a little bit grim, but our teams are already stationed there. Our full fledged team, which was there earlier, it's still there in Abu Dhabi, and we have already indicated that we have got the business for 500 crores in first quarter itself from the Middle East side. So at the same time, there's a cautiousness. Businesses are new projects are less, but still we are continuing to target the projects and have been successful in doing so.

38:19 Right. So you have highlighted the consultancy revenue contribution can be more than 50% and probably 55%. That's the segment where we really earn very good margins. So can we assume last time you highlighted operating margin with other income, probably you can hit 18%, 19%. Can that number now since consulting is will be more be revised to probably 20, 21% including other income? What is your thought on that? Last year, our operating margin was 16%, and definitely, we will try to hit that target in the current financial year also. Can it be better? Because consultancy, now you're guiding that could be Yeah. Think we are we are we are finalizing some change orders with our clients also.

39:14 If it is MetLife, our operating margin may be more... Even more than the previous year. So I think you you said somewhere probably 18 to 19%. So that's the guidance for this year. No, sir. No, sir. No, sir. Including other income, I'm saying. Yeah. No, No, sir. This year, we are targeting the operating margin of 16%, which we have achieved the last year also. There may be a possibility if we settle these in order with our clients, we may achieve more. But definitely, we... Right now, we are saying since it is the first quarter of the financial year, we we are maintaining the figure of 16% operating profit. Okay.

40:01 And lastly, on the intake, you did explain that you're still maintaining 8,000. So does that mean that the lumpy orders and you saw the execution delays of what is the YTD order, if I might have missed in order inflow? And for the remaining of the year, what are the orders we are looking for conversion? Is it more exports or consultancy or turnkey? If you could highlight that. Primarily, it could be in the consultancy or it could be in the overseas. It could be more towards consultancy and overseas. Let's see how it goes. So probably the lumpy order? We'll see how it goes.

40:48 The number of things that enabled. Right. So what is the YTD order inflow? You see, during the current year also, since we told you that we have already had the 2,750 at this point. Understood. Thank you, sir. Thanks, and all the best. Thank you. Thank you very much. The next question is from the line of Suraj from Simple. Please go ahead. Yes. Thank you for the opportunity. Couple of questions. See, when we talk about the new non oil and gas initiatives, can you give some color in terms of what is our right to win here?

41:41 Because, see, in oil and gas, we have a quite sizable quantum of credentials and build over the years. But when it comes to the non oil and gas, especially, say, nuclear or coal gasification or other segments, what is our right to win here and what is our communication to the customers? So that is one. And what kind of a sorry, just what kind of you know, what initiatives or what steps we have been taking capabilities or skill sets in these in a new? Yeah. With respect to the hydrocarbon, we are not saying that we are leaving hydrocarbon. We are going beyond hydrocarbon. Hydrocarbon is going to be always a core, but there's always a time lag when the project is not there. And you're not... We have not seen in this financial as of now, the mega project, which is there, they are still in the initial stages and So you have to target other businesses outside the hydrocarbon.

42:41 So that's how we are focusing on the other segments, which we have explained in the India segment. You already know that infrastructure is one of the major part of our business today. Today, in this financial year itself, it is around 45% which is contributing to infrastructure. Infrastructure is contributing to our business inflow. We just stick to the nuclear and the other area like coal classification. We have these strengths available within the company to handle those kind of projects, We have people who have worked in the nuclear segment. We have people who have worked in the hydrocarbon. Hydrocarbon and coal gasification is not much of a difference because we use the same skill set and same technology, a little bit is different, but the skill sets are available to handle all this kind of thing. We have been involved in coal rectification for quite some time, many years in this segment because, however, there was not much of a project.

43:30 There are smaller projects where there. We have been doing some r and d work in house also on this, so there's no problem of skill. We keep on upgrading the skills of our people. Like, we keep on sending them on the training for the relevant areas wherein they have to strengthen their skills in that new area, which we are doing. We are also open, and we are all recruiting people from the... At the mid level also, wherever it is required, the specialization is required. So that's all kind of strategies we adopt to develop these skill sets within the company. So see, that's very elaborate answer. Thanks for that. But see, one has to understand outside of hydrocarbons, what kind of a guardrails you have in place, you know, because we are already doing new segments for you and even from the customer, you know, they would have a steady state of vendors, you know, come in who have a good execution track record, right, which for us, we are just starting out. So in that sense, you know, when it comes to communication or, you know, putting that value proposition to the customer, what is that based on? And internally, what kind of a large deals you have in place to make sure that, you know, you hit the internal profitability or the return targets?

44:47 Thank you. Whenever you go into the new segment, you always use your existing capabilities to emphasize on the clients. You know that they are 60 year old company and handled all kind of complex projects. So if you talk about the infrastructure, it's not a very complex project. We have the skill set available for project management everywhere, and we have done a lot of projects in infrastructure. So we... Nobody questions the cavity of EIL in those segments. In fact, we are very choosy in the infrastructure. We go into the specific segments only. We don't go into the regular building construction and any kind of work construction and all. We go into the specific, like, data centers. We go into the work like research and development facilities of the client. We go into the projects which are related to the IIM's IT, constructing their buildings and all. Going into the...

45:38 It's some kind of convention centers wherein you have skill sets available, and many of these projects are from the oil oil and gas companies also. Like, we have been associated with the in development of the convention center. We are also engaged with NTTC for development of their townships. So we are we are targeting the clients which are in the hydrocarbon segment only and outside segment also who need the infrastructure support. And they know our capabilities, so there is no of that issue. Going into the new segments like all that certification, all we have people we have people trained with us. And they know there's nobody like in the hydrocarbon segment available because, you know, hydro carbon segment is much more complex than any other segment, like coal gasification or any other segment. Nuclear, it's a it's a new area. So we are very... We are developing our skills, and we're gradually entering into the area, wherein primarily we focus on the balance of plant, which is balance of plant is is a non...

46:35 Noncoal nuclear, which is... It's almost similar to what we do in the hydrocarbon. So those skills are available, and the client understands. All the relevant client understands that they can do it, and that's how we get the assignment. So just one follow-up on this. See, if you look at our own journey in the fertilizer space, especially in India, you know, just to make a very strong point in terms of building that credential, we also coinvested in the project. Right? So when it comes to these new centers, especially, say, coal classification or clean energy, be it green hydrogen or green ammonia or nuclear projects, would we be also coinvesting in those projects to build those credentials? Or the approach would still largely be more on the execution side and not participate financially?

47:25 Not like that. It is depending on the kind of opportunity and the profitability in that segment, which is established. Fertilizer, we have seen. We have the experience. We have implemented And noncore, you can see that we are setting up a CVG plant. We're investing our own money to set up that plant. So those non hydrocarbon investments, we are also taking. But you know that it's a public sector company. We have to take guidance and work under the guidance and kind of money available with us. Those decisions and number of proposals are always under consideration. So we'll see what fits best and where the project is of our interest and where it... Where we can have the... Like, the the way we utilize our capability in the fertilizer, and we we became the partner in that position. If this kind of opportunity comes, we are open to thinking about.

48:14 Okay. I just have two, three more questions. Can I ask? Yes, please go ahead. So see in domestic market also, you have this new energy policy being rolled out by the government recently. And so in that sense, you have multiple sectors outside of core hydrocarbons for you to clean. Where will the larger focus of the management lie? Would it be more on consultancy? Would it be more on LSTK projects? Or I mean, since there is so much of correct me, but there is so much of inquiry or opportunities available for you, what is typically your approach? Because you have a steady, only a limited base of skill manpower for you to deploy. So how are you going about with that project selection or, you know, end sector selection?

49:07 We have a real extensive manpower available with us. Thus, we take people from outside. We have been recruiting people from outside. We take the support of the specialized agencies for the noncritical work. So those manpower is not a dear for us. And with respect to going for the EPC or LSTK, we choose depending on what kind of project which... Where the risk is minimized, we try to choose that kind of segment for us. But you know that most of the EPC projects, we do it on OB basis, an open book estimate basis. Our preferred choice is that. And most of the contracts which have been entering into e e segment are OB. So we choose if we get an opportunity on the... This basis, ODU basis, or in such an area where we have the scale and we know that we don't need any...

49:54 We have minimum dependence on the other agencies, other agencies, then we also bid for the... It's all choice depending on the type of the project, depending on the skill set available within the company if we choose. Right. But do you do you think it's a problem where I mean, it's a good problem to have. But is it a scenario where you're seeing many inquiries or pipeline being very strong across existing core and non core segments based on what are you seeing right now? There is... There are inquiries in the core and noncore segments, definitely. That's how we are getting the business. Okay. So this annual flow of 8,000 per order kind of order book, this can this should be able to sustain for next few years?

50:45 Yes. We will. That's what we are working towards. Okay. Last two questions. One is on the investment book. See, we invested in the fertilizer project and there's another investment as well. Any thoughts in terms of monetization because it has served as utility in terms of the credential building. Incrementally, how you do look at it? No. It is not the purpose of credentials building. It is an investment also. We are getting money out of it. It's an investment, a safe investment for us. We're getting dividends from the NRS in times to come. We'll be getting good dividend from RFCL as soon as the plant has started working and process the capacity limits. So this investment is not only for the PTR. We we didn't need the PTR for getting into the fertilizer. The fertilizer, we already had the PTR earlier.

51:40 And NRL, we have the extensive experience. It's all strategic investments. So we will not... I don't think we are at this point of thing... Thinking about in cashing them. But but sir, you know, if the cash position would just keep on building up, outside of these investments, have a sizable surplus cash. And given the nature of the business, this will only further increase. So is there any concrete thinking around sharing this cash with shareholders? No. Definitely, are having cash reserves, but certain other investment plans are also under consideration with management. Whenever these plans will be completed, definitely, we will let you know.

52:30 Okay. As of now, there is no such plans to distribute the entire results to the shareholders. Okay. Last question was on the overseas book. Are already giving good dividend to our shareholders. It is in the range of 100% in the current financial. No, that is really appreciated. But as I said, given the nature of the business, this will only further keep building up. And as minority shareholders, we would also prefer instead of, say, investments and some other. We're looking for the opportunity. Definitely for investment. Definitely, we are fulfilling the expectation of our minor shareholders also by way of dividend.

53:20 Sir, Okay. Last question was on the overseas book. See, traditionally, Middle East is a reason we have had a very little penetration, right? We have been making efforts to further penetrate and get approved with most of the global players. Can you give some color, more elaborate color in terms of what exactly so what initiatives we have been taking? You know, where are we in that whole journey right now, and how do we see this scaling up over the next three, five years? Sir, you must have seen that in last three years where we have grown in the international market, in this, particularly in The Middle East. We have already declared how much business we have received from Middle East, specifically from the Abu Dhabi in last few years. We have grown in from INR 30 crores, INR 2,000 crores in three, four years.

54:16 So you can understand from the other kind of business initiatives and lot of frame agreements which we have entered with all the clients and all. We are not struggling for it, but we have already signed all those agreements and mega projects, the mega mega contracts we have signed. So we are on a good path, and we are on a progressive path. This this almost thing would not have happened. The business scenario would have been different. You know all... Everybody knows about what is happening there. So are we now in paneled, approved with all the major players? It paneled with all the consultants. All all the major national oil companies, we are in panel. Okay. And then the discussion on projects, is it more based on pricing or there's a lot of hard sell you have to do in terms of capability Don't have to hard showcase.

55:05 No. No. Wait a minute. We don't have to hard sell. We are in panels, and you don't have to hard sell. It's a competition. Again, when you get in panel, it's a competition. They have a panel trained party. There'll be competition. That's true everywhere, whether it's in India or outside India. It's a competitive world. Got it. Thank you very much. Yeah. Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Thank you, everyone. Thank you so much for your participation, and let's hope the the current financial year would be much more profitable and better than the last financial year.

55:51 So we... Our... All our companies' efforts are in that solution., sir, you would like No. Thank you. On behalf of TAM Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.