Engineers India Ltd

NSE:ENGINERSIN

Earnings Call Analysis

Engineers India Reports Strong Order Growth and Revenue Guidance for FY 2025

Engineers India Limited posted a robust order inflow of INR 5,137 crores in H1 FY '25, significantly up from INR 3,400 crores in FY '24. With new orders in October, the total order book has reached INR 12,000 crores. The company expects to generate INR 3,500 crores in total revenue for FY '25 with margins targeted between 20% to 25% for Consulting and 5% for Turnkey projects. With a focus on green projects and an encouraging international pipeline, the outlook suggests a potential revenue of INR 5,000 crores within two years【4:10†source】.

A Robust Start with Significant Order Inflows

In the first half of financial year 2024/2025, the company demonstrated a strong performance with order inflows totaling INR 5,137 crores, a notable increase from the previous year's INR 3,400 crores. This upward trend continued into October, pushing total order inflows to INR 6,856 crores, reflecting a healthy demand in both the Consultancy and Engineering segments.

Impressive Order Book Growth

As of September 30, 2024, the company boasts a substantial order book of INR 12,000 crores, including INR 6,490 crores from the Consultancy segment and INR 4,650 crores from LSTK (Lump Sum Turnkey) projects. This balance suggests a diversified stream of revenue expected from ongoing and future projects, reinforcing investor confidence.

Financial Highlights: Strong Growth Metrics

For the quarter ended September 2024, the company reported revenues of INR 676 crores, up from INR 611 crores in the preceding quarter. Profit before tax also saw significant growth, with PAT rising to INR 791 crores, marking a 36% increase in profit year-over-year. The earnings per share (EPS) was reported at INR 1.41, further supporting a positive outlook.

Guidance for Future Revenue Growth

Looking ahead, the company targets a revenue of INR 5,000 crores annually, projected to be achieved within the next two years. This forecast is underpinned by a well-structured order book and the anticipation of new contracts being awarded in the near future, which could significantly bolster the top line.

Margin Stability Amid Challenges

The company maintains its margin targets, with the Consultancy segment aiming for profitability between 20% and 25%. However, the Turnkey segment has faced challenges, with a decrease in revenue attributed to the completion of major projects. The management expects margins to stabilize around the last year’s levels of approximately 8.8% for overall operations, indicating confidence in operational efficiencies.

Emerging Opportunities in Renewable Energy

The company is venturing into new business lines such as green hydrogen, coal gasification, and biofuels. Notably, a recent milestone includes securing a biofuel refinery project valued at INR 200 crores, signaling the company's proactive positioning in the growing renewable energy sector. As government policies increasingly favor bioenergy, this could unlock significant future revenue streams.

International Expansion Strategies

The company's international operations are gaining momentum with significant activities in regions like Africa and the Middle East. The Abu Dhabi office has reported its highest order bookings ever, while ongoing projects in Nigeria are anticipated to yield further bids and contracts, reflecting a commitment to international market penetration.

Future Prospects and Pipeline Projects

With an underlying potential of reaching INR 8,000 to 8,500 crores from various projects in different sectors, the company is strategically placed in the competitive market of refinery and petrochemical expansions, particularly with ongoing bidding processes. The management is optimistic about securing upcoming tenders, particularly those related to major domestic CapEx in the oil and gas sector.

Conclusion: Strong Position for Growth

Overall, the company appears well-positioned for future growth driven by a robust order book, diversified revenue streams, and an expansion into new materials and energy sectors. As the landscape evolves, the strategies in place to harness opportunities in both domestic and international markets can significantly impact investor confidence and long-term returns.

Earnings Call Transcript 2025-Q2

[Operator]

Ladies and gentlemen, good day, and welcome to the Engineers India Limited Q2 FY '25 Earnings Conference Call hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors Limited. Thank you, and over to you, ma'am.

[Bhoomika Nair, analyst]

Yes. Thanks, Neha. Good afternoon, everyone, and a warm welcome on behalf of DAM Capital to the 2Q FY '25 Earnings Call of Engineers India Limited.

We have the management today being represented by Mr. Sanjay Jindal, Director of Finance; Mr. Suvendu Padhi, Company Secretary and Investor Relations; Mr. R.P. Batra, Executive Director of Finance and Accounts and Investor Relations; Mr. Sunil Saxena, Executive Director of Technical and Investor Relations; Mr. Amanpreet Singh Chopra, Senior General Manager, C&MD Office and Investor Relations; Mr. Vivek Midha, Senior General Manager Marketing, Business Development and IR; and Ms. Neha Narula, Senior Manager, Company Secretary and IR.

At this point, I will hand over the floor to Mr. Sanjay Jindal for his initial remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir.

[Sanjay Jindal, executive]

Thank you, Ms. Bhoomika. Good afternoon, everybody, and very happy Diwali to all of you. A warm welcome to Engineers earnings call of quarter 2 for financial year '24/'25. During the first half of financial year '24/'25, the order inflow in the company amounted to INR 5,137 crores vis-a-vis order inflow of INR 3,400 crores in financial year '23/'24. The order inflow in Consultancy and Engineering segment amounting to INR 2,863 crores and INR 2,274 crores in [indiscernible]. This was the order inflow up to 30th September.

And in case, we consider the order inflow in the month of October also, then our total order inflow is INR 6,856. This company has order book worth of INR 11,155 crores comprising under Consultancy segment of INR 6,490 crores and under LSTK segment of INR 4,650 crores as on 30th September 2024. However, if we consider the order inflow for the October month also, then our company is having an order book of INR 12,000 crores. We have declared results of quarter and half year ended September '24 on 29 October 2024.

As regards to financial performance for 3 months ended September '24, the company has registered amount of INR 676 crores [indiscernible] INR 611 crores during the first quarter of financial year '24/'25. [indiscernible] on Consultancy and Engineering segment stood at INR 383 crores and from Turnkey segment INR 293.

During the [indiscernible] quarter company has recorded profit before tax of INR [ 100 ] crores and PAT of INR 791 crores in comparison to [indiscernible] INR [indiscernible] crores and INR [indiscernible] crores, respectively. During the first quarter of current financial year, showing an increase of 36% in profit reported and 44% in profit [indiscernible]. Notably, EPS for the quarter ended September '24 is INR 1.41 vis-a-vis June quarter '24, it is INR 90,000.

That's all, Bhoomika Ji.

[Bhoomika Nair, analyst]

[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.

[Mohit Kumar, analyst]

Congratulations on a very good order inflow. Sir, my first question is on the -- I think you mentioned that received the order in October, right? Can you quantify the quantum? And can you just let us know whether it is for Consultancy or Turnkey? And if you can just throw some light on the kind of on the exact order received -- the nature of order received?

[Sanjay Jindal, executive]

In the October month, quantum is INR 1,729 crores, and most of the orders are [indiscernible].

[Mohit Kumar, analyst]

Understood, sir. My second question is, sir, on the BPCL refinery, I think the [indiscernible] has taken off. My question is, has all the packages for Consultancy been decided? Or do you still think there are still some packages are still to be tendered out?

[Sanjay Jindal, executive]

No, all the packages have been awarded, work is already [indiscernible].

[Mohit Kumar, analyst]

Understood. My last question is on the IOCL. I think Paradip, the petrochemical, has the tender been floated? Can we expect the tenders to finalize in the second half? Or do you think this will spill over to '26?

[Sanjay Jindal, executive]

No. The tender has already been floated, opened. We have bidded project, and we have become [indiscernible]. So we are the L1, and we are likely to get that so in short time after there [indiscernible].

[Mohit Kumar, analyst]

Is it 2 or 3 packages or the single package for the Consultancy, sir, or the IOCL Paradip?

[Sanjay Jindal, executive]

There were 2 packages, only 2 tenders are given. So both of them have been -- would be coming to us -- on Consultancy.

[Operator]

The next question is from the line of Aditi Novan from RSP Ventures.

[Unknown Analyst]

So I have a few questions around the top line. So sir, you had guided for about INR 5, 500 crores of revenue for FY '25. And looking at the current run rate, we are around INR 1,300 crores on the first half. So how are we looking for the remaining 3 quarters? How should we factor in [indiscernible]? That is one.

Second is, essentially in terms of Turnkey revenue [indiscernible] are we looking for revenue orders getting concluded in the next 2 quarters, which would be contributing to the top line?

These are the questions on revenue. I have 2 other questions, which I will be taking after [indiscernible] answer.

[Sanjay Jindal, executive]

Can you repeat the last one, please? [indiscernible] your voice wasn't very clear.

[Unknown Analyst]

So, yes, so my question was, are we -- so the Turnkey revenue seems a little subdued in the first half of the year. So [indiscernible] for the next 2 quarters -- and are there any big contracts that are going to get concluded that could add to the top line and so if you could meet that guidance of INR 3,500 crores of top line?

[Sanjay Jindal, executive]

Okay. Let me answer [indiscernible]. First of all, [indiscernible] about the [indiscernible]. [indiscernible], as you know, we are getting business [indiscernible] one is Consultancy segment and the second is Turnkey segment.

In the Consultancy segment, there is increase of revenue about 3%, but there is a down of around 19% in the Turnkey segment, 37% in Turnkey segment. This downfall was there because some of the major [indiscernible] were completed during the first and second quarter of this financial year.

But on the other hand, we have also received some [indiscernible] projects also [indiscernible] and we expect that in the coming quarters, whatever is the shortfall of [indiscernible] that will be compensated by the existing [indiscernible] which are in progress as well as [Technical Difficulty].

[Unknown Analyst]

So again, I just wanted to clarify. So you had mentioned that you'd be targeting about INR 3,500 crores of revenue. So are we want to act to achieving that?

[Sanjay Jindal, executive]

We are targeting [indiscernible].

[Unknown Analyst]

Okay. Secondly, sir, I was just doing this calculation for Turnkey. So the order book -- just a second -- so just to give you an example, let's say, at the beginning of quarter 2 FY '25, the Turnkey order book is about INR 3,364 crores and the new orders that we received were around INR 107 crores. [indiscernible]

[Sanjay Jindal, executive]

[indiscernible]

[Unknown Analyst]

[indiscernible] the beginning of the quarter, adding the new orders that we received during the quarter and subtracting revenue that are recognized in the quarter. So I should be getting the closing order book for Turnkey, which should be around INR 3,178 crores. But the Turnkey cumulative figure as of 30 September is around INR 4,600 crores. So I just wanted to understand why is this different? I mean, is there some -- is it -- that -- I'm doing wrong there?

[Sanjay Jindal, executive]

No, there is [indiscernible] just go for the opening order book of Turnkey segment at the end of the last financial year and [indiscernible] the new order and then deduct the [indiscernible] the half year, you will be getting [indiscernible] only the different [indiscernible].

[Unknown Analyst]

[indiscernible] And my last question [Technical Difficulty]

[Sanjay Jindal, executive]

In this quarter, we have received our [indiscernible] share in INR 22 crores [indiscernible] around INR 55 crores. So going forward also, we expect that we'll be able to get [indiscernible].

[Operator]

The next question is from the line of Amit Anwani from Prabhudas Lilladher Capital.

[Amit Anwani, analyst]

Yes. Sir first thing I wanted to understand, you did highlight that the order book now is about INR 12,000, and we have received one more order. Just wanted to understand from you, what is the total L1 pipeline? If you could highlight the project and values? And apart from L1 pipeline, what is the prospective pipeline project-wise and value-wise for FY '25 and '26, next 18 months?

[Sanjay Jindal, executive]

With respect to the orders, which we have told you that different business [indiscernible] already reached INR 6,800 crores. So it's just a half year and we are very much hopeful that we'll be able to add about INR 1,000 crores or INR 2,000 crores further. Let's say, around INR 8,000, INR 8,500 [indiscernible] should be able to reach [indiscernible].

[Amit Anwani, analyst]

All right. Any notable projects you would like to highlight?

[Sanjay Jindal, executive]

Sorry, what?

[Amit Anwani, analyst]

Any notable project names you would like to highlight?

[Sanjay Jindal, executive]

Number of projects are in the bidding process, and we have [indiscernible] that might come [indiscernible] other projects that we will be [indiscernible] which we are anticipating on the [indiscernible] side. So [indiscernible] be difficult at this point because [indiscernible] could be realized.

[Amit Anwani, analyst]

And now with respect to the business performance, since there's so much order book buildup is happening, what is our internal assessment or ambition, what kind of annual peak revenue we can do in next 3 years? Any number you have because we have been seeing the previous years, the revenue has been kind of flat, but now past 2 years, the order book has built up significantly? Just wanted to understand, can we expect INR 4,000, INR 5,000 kind of revenue in FY '27? Any thought you wouldn't like to give?

And same question on the margin. We have been seeing Consulting margin has been low. So any assessment on the new orders and the EBIT margin for Electrician and Consulting? And what kind of margins we can do in the next 2, 3 years? Because in the previous cycle, we did 20%-plus margins also and very good growth also 10 years back. So just a thought what is a 2-, 3-year view since the order book has now built up?

[Sanjay Jindal, executive]

First of all, let us discuss about margin. And in the Consultancy segment, we are maintaining our segment profit of 20% to 25% on regular basis. And in the Electrical business, it is around 5%. And we are sure to maintain in the coming years also this kind of margin. We are targeting this margin.

[Amit Anwani, analyst]

Right. And top line, sir?

[Sanjay Jindal, executive]

And top line, as you've seen, our order book is [indiscernible] and we are expecting more orders to come [indiscernible] target of INR 5,000 crores [indiscernible].

[Amit Anwani, analyst]

INR 5,000 crores turnover within next year. So is it FY '27?

[Sanjay Jindal, executive]

2 years -- around 2 years. It will take 2 years.

[Amit Anwani, analyst]

Annual turnover of INR 5,000 crores, right?

[Sanjay Jindal, executive]

Annual turnover of INR 5,000 crores. In fact, it would be [indiscernible].

[Amit Anwani, analyst]

Right. Sir, one more thought on the -- there has been a lot of talks and you have been also highlighting in the PPT about the new initiatives like green hydrogen, coal gasification and biofuel. And there has been talks and policies from government also on various bioenergy related stuff. So just wanted to understand, obviously, you have been highlighting over past 1 year, any meaningful development there? Any orders on the annual in this phase? Anything which has developed in this area?

[Sanjay Jindal, executive]

One of the recent achievement in this case was the biofuel refinery [indiscernible] which is around INR 200 crores [indiscernible] apart form that we have done a number of studies and kind of [indiscernible]. Nothing major implementation things has come as of now. But a lot of things are in pipeline and in discussion. So we are hoping to get them realized. For this -- for the last 2 quarters, the bigger achievement is the bio refinery [indiscernible].

[Amit Anwani, analyst]

Sir, lastly, sir, just a clarification, all these orders, which are in the pipeline and which have been won in the past 24 months. So largely, all these orders are nominated. Any ballpark you can suggest that -- is it cost plus certain percentage? And what is the percentage? Anything you would like to highlight there, with respect to orders or...

[Sanjay Jindal, executive]

[indiscernible] the same profitability [indiscernible] we received. There is nothing specific we can highlight on [indiscernible] competitive market. [indiscernible] to comment on that. But as we are maintaining the Consultancy profitability of 30%. That will be the 20% to 25%. That would be the target. And [indiscernible] 5% to 6% [indiscernible] remain the target [indiscernible] whatever [indiscernible].

[Operator]

The next question is from the line of Shirom Kapur from Prabhudas Lilladher.

[Shirom Kapur, analyst]

And -- a lot of my questions have been answered, but one thing I wanted to ask is on your international business. You spoke about pickup in opportunities in Africa, specifically Nigeria and Algeria and as well as Middle East and some in Latin America as well. So could you highlight any developments in your international business or any [indiscernible]?

[Sanjay Jindal, executive]

[indiscernible] Abu Dhabi office is doing very well. We have achieved this year, highest order bookings from that place. And since it's holiday week [indiscernible] we have already reached from that office that has ever been achieved. So that offers is on the team, and we'll be further progressing and we are working with all the [indiscernible]. With respect to Nigeria, Nigeria, we're still working on a [indiscernible] project and first phase is already on. But the second phase [indiscernible] come towards the end of this year, [indiscernible] goes well, then it will come [indiscernible]. [indiscernible] Nigeria also we are bidding for a number of projects. So those are in the bidding process [indiscernible] will get realized and to be adding to our portfolio. So that's the whole thing which we are working. International is one of the focus areas for us. We are working on that.

[Shirom Kapur, analyst]

And just another question now moving to the domestic side. And you know with all the upcoming refinery and petrochemical CapEx that we have over the next 4, 5 years. So do you have a -- what kind of projects are you continue bidding for in the pipeline? For example, IOCL, of course, Paradip mentioned, but [indiscernible] ongoing projects such as the Panipat expansion and [indiscernible], et cetera, [indiscernible]?

[Sanjay Jindal, executive]

Panipat expansion is already we are executing. So that will be some [indiscernible] years [indiscernible] the information -- the projects which are in market, we have already [indiscernible] we are bidding for it. Apart from that, there are a number of [indiscernible] which we are discussing from private investors. So those are also there on the [indiscernible]. So let's h[Operator Instructions] for the best.

[Shirom Kapur, analyst]

Right. Okay. So yes, just to clarify that even the ongoing expansions that are going, most -- all those packaging have already been bid out. There's no further packages potentially right now to capture, right, in the ongoing expansion project?

[Sanjay Jindal, executive]

There's no package to be awarded. It is basically the physical [indiscernible] most of the packages are awarded by the [indiscernible] and they are in the construction phase.

[Shirom Kapur, analyst]

Okay. Understood. And if you could highlight anything on -- I know you mentioned that you received the biofuel biorefinery order for now [indiscernible] anything on green hydrogen or coal gasification that you could mention, any projects that you have been bidding for or what projects are in the pipeline? And if you could quantify them? .

[Sanjay Jindal, executive]

Many of the companies have noted these tenders for [indiscernible]. So actually, we don't do that. So we have [indiscernible] for the Consultancy. So we are working on few of the [indiscernible] green hydrogen [indiscernible]. So we are working on those kind of projects.

[Operator]

The next question is from the line of Nidhi Shah from ICICI Securities Limited.

[Nidhi Shah, analyst]

I had a couple of questions on your full year margin. So last year, we saw margins at 8.8%, this is EBITDA margin. So this year, the first 2 quarters have been lower than that. Are we expecting margins to improve that is on the entire sales? Are we expecting them to improve in the rest of the year?

[Sanjay Jindal, executive]

Yes, we are expecting that the margin will be in the in line as last year [indiscernible].

[Nidhi Shah, analyst]

Okay. Also the new orders that you have secured this quarter, is there potentially a higher upside on those orders than we have orders that are currently sitting in the order book that we're executing at this point in time?

[Sanjay Jindal, executive]

[indiscernible] over a period of time [indiscernible].

[Nidhi Shah, analyst]

Okay. And given that order inflow is [indiscernible] this year and the outlook for the next 1 to 2 years is also good. Do we expect that given how much order flow is there in the market that margins would improve on these orders based on that itself?

[Sanjay Jindal, executive]

Yes, margin will definitely improve on the [indiscernible] efficiency as well as [indiscernible].

[Nidhi Shah, analyst]

And lastly, just a couple of questions on RFCL. What is the revenue and the EBITDA for H1 for RFCL and numeric value as well?

[Sanjay Jindal, executive]

Profit after tax for our [indiscernible] is around INR 55 crores for the half year.

[Nidhi Shah, analyst]

Okay. And RFCL revenues for the [indiscernible]?

[Sanjay Jindal, executive]

[indiscernible] revenue for the first half year for our share, so 46% share is [indiscernible].

[Nidhi Shah, analyst]

Okay. And the same question would be for Numaligarh and as well as also in Q4 you had mentioned that Numaligarh is undergoing an expansion to be in MMTPA. So how is the expansion progressing at this point in time?

[Sanjay Jindal, executive]

[indiscernible] the revenue will be coming only after the expansion is completed. Right now, we are capitalizing whatever [indiscernible] So over a period of time, [indiscernible] as well as the profitability [indiscernible].

[Nidhi Shah, analyst]

Okay. But when can we expect the expansion to be completed?

[Sanjay Jindal, executive]

Right now, I don't have the [indiscernible] next year or at the end of [indiscernible].

[Operator]

The next question is from the line of Sanjay Shah from [indiscernible].

[Unknown Analyst]

I hope you can hear me?

[Sanjay Jindal, executive]

Yes.

[Unknown Analyst]

Sir, just one question. In your annual report, you had mentioned about the opportunities which might come up in the [indiscernible] sector, and there were some discussions going on with NTPC and [indiscernible]. So is there any progress on that?

[Sanjay Jindal, executive]

Yes, [indiscernible] discussions are on [indiscernible] in the initial stages of it. So we are anticipating NTPC [indiscernible] times to come. So we are working with them, and we have plan to approach them so that we get involved in this [indiscernible] taken place [indiscernible] as of now.

[Unknown Analyst]

Got it. Sir, and then in the blueprint for the nuclear sector, would it be just a larger nuclear power plant? Or are you also possibly or likely to get involved in the initiative for the Bharat Nuclear Reactors also?

[Sanjay Jindal, executive]

[indiscernible] in the future.

[Operator]

The next question is from the line of Shirom Kapur from Prabhudas Lilladher Capital.

[Shirom Kapur, analyst]

I just had a quick question on some of the projects that have recently been announced by some of the major oil and gas players. So for example, [indiscernible] announced a INR 60,000 crore project to set up an ethane gas cracker. Similarly, BPCL and [indiscernible] also announced proposed major projects for 10 to 12 million metric tonnes refinery capacity with investments of up to INR 1.5 lakh crores. So what is your view on these projects? When do you expect that some of these projects to come in the Consultancy and the tenders [indiscernible] open for such project?

[Sanjay Jindal, executive]

All these projects are still in the feasibility stage right now. They have indicated the CapEx investment but are we -- right now, these are in the study phase. After the study phase is done, they will go for their investment approval from the board. And [indiscernible] anything concrete will come out on the [indiscernible] because what way they will go, which [indiscernible] they are going to have. The [indiscernible] work will start only after their initial board approval [indiscernible] these are initially in the feasibility stages and these are involved in [indiscernible].

[Shirom Kapur, analyst]

So you are already participated in the feasibility or that is potential feasibility study orders to come in from these projects? .

[Sanjay Jindal, executive]

[indiscernible]

[Operator]

The next question is from the line of Manosh Shah from [indiscernible] Investments.

[Unknown Analyst]

I have some basic question, like if you can explain to me regarding the revenue booking factors, so the Consultancy project and Turnkey project. Like initially, what happens for the Consultancy, [indiscernible] more of expenses because you are in the [indiscernible] stage and so on [indiscernible] and then later part the revenue picks up. If you can explain this for the Consultancy as well as for the Turnkey project, that will be very helpful.

[Sanjay Jindal, executive]

Yes, basically, revenue is recognized [indiscernible] maybe for the first 1.5 years. [indiscernible]. After that, in the second year and third year, it will be around between 30% to 35% and [indiscernible] over the next year [indiscernible]. So that is the revenue utilization assumption for the [indiscernible] contracts.

[Unknown Analyst]

And for the Turnkey?

[Sanjay Jindal, executive]

[indiscernible] span over a period of 4 years [indiscernible].

[Unknown Analyst]

So what you're saying is, whether it's a Consultancy projects or a Turnkey project, your revenue cycles more or less remains the same [indiscernible] 30%, 35% of the revenues [indiscernible] and balance [indiscernible]. So it remains same for both Turnkey as well as Consultancy?

[Sanjay Jindal, executive]

[indiscernible].

[Unknown Analyst]

[indiscernible] This will help us understanding how the margins will like you will have some expenses in that particular quarter. So margins will be lower in that particular quarter. But if you look at 6 months ago, we are then we will be able to have a better [indiscernible].

[Operator]

The next question is from the line of [indiscernible], an individual investor.

[Unknown Analyst]

I have 2 simple questions. One is relating to Guyana. There was an article in which our company has been awarded the PMC services for power generation, first of its kind, to be done by natural gas. So far, they are doing it apparently by burning diesel. So I'm supremely confident that you would execute it in the most competitive way. What is the possibility of getting more work from this oil-rich country, which is quite favorable to our country nowadays? So one of that, more power generating capacities to come there or -- and also in the consultancy in oil refinery offshore?

And the second question which I have is, again, relates to future possible work is offshore wind energy. Typically, they are much bigger than what is there on the land. So what is the expectation which the company has in these 2 respects? Your take on that?

[Sanjay Jindal, executive]

[indiscernible] which includes the natural gas liquid project as well as power plants [indiscernible]. So right now, we have the [indiscernible] is coming from the [indiscernible], who will be actually operator of the oil [indiscernible] there and supplying [indiscernible] pipeline to the facility. We are working at the [indiscernible] contractor has been appointed by the [indiscernible] and we have also been appointed by the government. So we are managing their projects and trying to get it commissioned at the earliest because that is a major need for them.

With respect to the anticipation in the future because they have [indiscernible]. Right now, it's mostly being governed by the [indiscernible]. So we are anticipating an oil refinery there. And they are also anticipating a fertilizer project in the country. But it's going to take some time because actually, what they want is they don't wish to invest. They want -- they are looking for the investor to invest that project. So that is the pitch right now [indiscernible] could happen faster. So they are looking for the parties to invest in all these projects. That is the current situation of these projects.

And we also anticipate there will be an expansion in the existing power facility in times to come because they intend to supply the power across the country [indiscernible] in neighborhood countries also. So that is also the future direction [indiscernible].

So -- and we are very much well placed working with the government. So let's hope for the best. But actually, this job which we have worked on is under the competition. So there will be competition in future.

[Unknown Analyst]

Yes. And how about this offshore wind energy possibility?

[Sanjay Jindal, executive]

The offshore wind [indiscernible] the thing is like offshore is very close to our heart because we have our own offshore team working on this because we have been working for all the ONGC projects and [indiscernible] in offshore field. We have done more than 248 offshore platform. [indiscernible], we are in the offshore engineering platform designing and all. We have not done any [indiscernible] right now getting involved in some of these projects. And as soon as these -- there are a lot of opportunity cuts, we will definitely like to target the offshore wind project. Because we are looking into [indiscernible]. So because we have good strength of offshore designing, [indiscernible] platform design. So it very well [indiscernible] with our capabilities.

But all these are basically the [indiscernible] as a package because we have not much to do in that one because those are OEM supplied items. [indiscernible] primary focus will be only the offshore facility [indiscernible].

[Unknown Analyst]

[indiscernible] but since it's on a much bigger scale than what is there on the land, and this would be perhaps among the first one. So the possibility is even of this being the bigger, larger chunk of this and our expertise in the offshore, what could be the possible market size in case if India is to achieve renewable this thing of certain percentage by 2030, which is not very far away? So [indiscernible] focus on that? And what is your strength?

[Sanjay Jindal, executive]

I have already told you, strength wise we have no issue with that. We can do those projects. Basically in all these projects, we have [indiscernible] the offshore platform and the [indiscernible] and there will be an integration involved between all these facilities. So we are a very good integrator as well as the [indiscernible] of the offshore facility. We are very well [indiscernible] come in the market [indiscernible] be bidding for that. And that's [indiscernible] we are developing our skills and asking our teams to be exposed with the [indiscernible] offshore developments and all. So we are getting ready for all these kinds of opportunities in times to come.

[Operator]

As there are no further questions from the participants, I now hand the conference over to Ms. Bhoomika Nair for closing comments.

[Bhoomika Nair, analyst]

Thank you very much for giving us an opportunity to host the call and wishing you all the very best and a very happy Diwali to you and also all the participants. Thank you very much, sir.

[Sanjay Jindal, executive]

Thank you very much. Thank you, Bhoomika. Happy Diwali to all of you.

[Operator]

Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.