EIL is seeing an upside of investments in the Middle East for enhancing oil production before energy transition kicks in, and wants to cash-in into the opportunities available there, the executive added.
Engineers India Limited’s (EIL) order book remained flat in FY23 at Rs 7,694.6 crore, compared to Rs 7,655 crore in the same period last year.
Vartika Shukla, Chairman and Managing Director, EIL, said the company’s current order book stands at Rs 9,079 crore, including go ahead of around Rs 1,600 crore.
In a post-result press conference, Shukla said the share of international business in the order received was 15 percent in the financial year 2022-23 (FY23).
Shukla told reporters that there is an upside of investments in the Middle East for enhancing oil production before energy transition kicks in, and the company wants to cash-in into the opportunities available there.
“We are very well positioned (in the Middle-East) because we have long relationship with our clients there. We have tripled our manpower there,” said Shukla.
The company said that it has recently bagged a project worth around Rs 160 crore for a Greenfield Urea and Ammonia Complex in Africa.
“We have also progressed well with our ongoing engagement in Mongolia and Guyana. Strengthening our Abu Dhabi office has started fetching results as EIL bagged several projects from our esteemed clients in this part of the world,” said EIL in a press release.
EIL has received work order worth Rs 209 crore in this financial year (FY24) from the overseas that constitute more than 30 percent of its order value in FY24.
On the domestic front, the company said the Vizag refinery project is currently at the advanced stage of commissioning. Mechanical completion of Kochi Refinery – Palakkad section of the Kochi-Salem LPG Pipeline project has been achieved, EIL added.
The state-run oil and gas engineering consultancy company reported a net profit of Rs 190.18 crore in the quarter ended March 31, up 140.33 percent from Rs 79.13 crore in March 2022.
In the investor presentation, the company said it expects diesel demand in India to double to 163 million tonne by 2029-30, with diesel and gasoline covering 58 percent of India’s oil demand in 2045.
EIL expects growth in the chemical sector to be driven by strong demand amid increase in domestic production.
“Robust demand across end-user industries led by rising domestic consumption, strong export growth, and rising import substitutions are expected to be primarily growth drivers for the chemical sector,” the company said.