CASE STUDY
ENGINEERING | BELGAUM
Project Costing & Margin Recovery
A precision engineering supplier in Belgaum was executing multiple projects but had no clear view of project-wise costs or margins. Lekachaara helped them move from guesswork pricing to disciplined, project-level profitability.
The Struggle
The business was busy with orders, but the numbers behind each project were unclear.
- No project-wise costing or margin view
- Overheads allocated loosely across all jobs
- Frequent surprises when projects closed
- Difficult to know which projects were truly profitable
Management was relying on overall annual profit, not on project-level insight. Pricing and negotiations were driven by gut feel instead of data.
The Challenge & Our Fix
The Lekachaara Fix
We introduced a simple but disciplined costing framework that tied every rupee to a project.
- Designed a clear project code structure for all jobs
- Mapped material, labour and overheads to each project
- Set up monthly project-MIS reviews with management
- Highlighted underperforming projects early for corrective action
The focus shifted from just ‘finishing projects’ to ‘finishing projects at the right margin’.
Results & Impact
Within a few cycles, the engineering firm gained real control over project profitability.
• Clear visibility of margins for every major project
• Identified and fixed 8–10% margin leakage on key jobs
• Stronger position in price negotiations with clients
• Better decisions on which types of projects to prioritise
“Earlier, we only knew if a project made money after everything was over. Now we see margins while the job is running—and can correct in time.”
— Management, Belgaum Precision Engineering