Abu Dhabi orders lift Engineers India

Engineers India’s Abu Dhabi office has won new orders worth Rs. 150 crore in the first 2 months of fiscal 2016 from its Middle Eastern Clients. This is continuation of the traction which the new office had witnessed in FY15. Current orders are from oil and gas companies as well as from EPC contracts for engineering services.

The stock has reacted positively to this news and is up 2.78% at Rs. 203.55 per share on NSE currently, although share price has receded from day’s high of 208.05. Approximately 9.50 lakh shares have been traded on NSE and BSE since morning.

For FY15, company reported consolidated revenue of Rs. 1,741 crore and net profit of Rs. 313 crore. Thus, the Middle Eastern orders represent one month sales, which is quite substantial.  

While this news is cheerful for the stock, it also puts to rest some concerns on the slowdown in capex and fresh investments by the oil and gas sector, given the soft ruling oil prices.