Engineers India Ltd seems to be one of the major casualties of slowdown in Indian energy sector. The PSU major is going through a rough patch with plummeting order book position as well as turnover and profit. From an order book position of a high Rs 7848 crore in 2011-12, it is down to Rs 4544 crore and Rs 3317 crore in 2013-14 (till December). The turnover is also down drastically: from Rs 3699 crore in 2011-12 to Rs 2506 crore in 2012-13 and Rs 1824 crore in 2013-14.
With no major Greenfield refinery coming up in the near future, EIL’s fortunes are unlikely to turn better in the foreseeable future. Uncertainties in natural gas sector have too added to the cup of woes of the company with no major activity taking place in LNG or gas pipeline sector.
EIL had hired Booz & Co, a leading global management consultant, to look at future strategy for the company. Accordingly, Booz & Co has suggested that EIL should concentrate in the Middle East, South East Asia and Africa along with a strategic presence in USA.