EIL’s Posts Lower Revenues In FY13

Engineers India (EIL) announced its Q4FY13 results on May 28. Overall, its numbers for the quarter as well as the financial year were far from satisfactory.

The company posted revenues of Rs 513.47 crore for Q4FY13, which marked a decline of 15% on a quarterly basis and 58% on a yearly basis. Further, the revenues for FY13 stood Rs 2529.04 crore against Rs 3723.44 crore in FY12, a decline of 32%.

Its total operating expenses for FY13 have decreased by more than 35% to Rs 1936.24 crore over a 45% reduction in other expenses. However, the employee expenses for FY13 increased by 6.63% over that in the last year.

EIL's Other Income for the fiscal has seen a 36.41% increase over that seen last year. Interestingly, the bottomline for FY13 decreased by only 1.81% as the depreciation cost dipped by 43% and the finance cost declined by over 99% against that in the last financial year. However, the company posted 36.64% growth in its bottomline YoY for Q4FY13. On a yearly basis, the net profit decreased by 5%.

Though the company has announced a dividend of Rs 3 per equity share, the company is struggling to complete its projects due to a subdued economic environment. We feel that investors should stay away from this counter.