Engineers India fell 2.90% to Rs 85.30 after the company reported 79.2% decline in consolidated net profit to Rs 24.93 crore in Q4 FY21 as against Rs 119.69 crore in Q4 FY20.
Net sales during the quarter increased by 30.9% year-on-year (YoY) to Rs 1131.90 crore. Among segments, revenue from Consultancy & Engineering Projects segment was at Rs 419.87 crore (up 1.9% YoY) and revenue from Turnkey Projects segment was at Rs 712.02 crore (up 57.5% YoY) in the fourth quarter.
Total expense rose by 27.9% to Rs 970.39 crore in Q4 FY21 over Q4 FY20, due to higher cost of technical assistance/ sub-contracts, higher raw material costs and higher finance costs.
The employee benefit of PF is administered through a separate EIL Employees Provident Fund Trust. Out of the investments made by PF Trust in the past, some issuers of securities have defaulted in interest payments and/or principal repayments. The amortized value of probable future principal defaults is Rs 193.70 crore as at 31 March 2021.
Considering the employers obligation to make good the loss in value of these investments under the Provident Fund regulations, the company has provided in its books of account 80% of the amortised value (of probable future principal defaults) amounting to Rs 154.96 crore in the current year and charged to consolidated statement of profit & loss. The same has been disclosed as exceptional item in the consolidated statement of profit & loss of the company.
Consequently, profit before tax in Q4 FY21 stood at Rs 46.40 crore, down by 73.1% from Rs 172.24 crore in Q4 FY20.
The company reported 41.3% fall in consolidated net profit to Rs 248.91 crore on 2.9% decline in net sales to Rs 3144.17 crore in FY21 over FY20.
The board of directors have recommended a final dividend of Rs 0.60 per share in addition to interim dividend of Rs 1.40 per share paid during the year.
Engineers India provides design, engineering, procurement, construction, and integrated project management services primarily for oil and gas and petrochemical industries. The Government of India owned 51.32% stake in company as on 31 March 2021.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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