Capitaline

Results 24-Aug-21

Analysis

ISGEC Heavy Engineering

Sales up 5%, PAT down 67%

Consolidated net sales (including other operating income) of ISGEC Heavy Engineering has increased 5% to Rs 1128.38 crore. Operating profit margin has jumped from 8.6% to 4.3%, leading to 48% decline in operating profit to Rs 48.20 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.85% to 27.35%. Purchase of finished goods cost rose from 32.75% to 36.03%. Employee cost decreased from 9.36% to 8.70%. Other expenses rose from 20.14% to 23.74%. Other direct service cost rose from 7.53% to 9.71%. Other income rose 28% to Rs 5.14 crore. PBIDT fell 45% to Rs 53.34 crore. Provision for interest fell 13% to Rs 11.2 crore. PBDT fell 50% to Rs 42.14 crore. Provision for depreciation fell 12% to Rs 23.85 crore. Profit before tax down 68% to Rs 18.29 crore. Share of profit/loss was 29% lower at Rs 0.05 crore. Thus PBT after shore of profit from associate was down 68% to Rs 18.34 crore. Provision for tax was expense of Rs 4.57 crore, compared to Rs 14.67 crore. Effective tax rate was 24.92% compared to 25.95%. Thus PAT was down 67% to Rs 13.77 crore. Minority interest decreased 78% to Rs 0.14 crore. Net profit attributable to owners of the company decreased 67% to Rs 13.63 crore.

Sales of Mfg of Machinery & Equipment segment has gone down 1.58% to Rs 335.91 crore (accounting for 28.62% of total sales). Sales of Engineering Procurement & Construct segment has gone up 14.01% to Rs 686.06 crore (accounting for 58.46% of total sales). Sales of Sugar segment fell 17.86% to Rs 153.64 crore (accounting for 13.09% of total sales). Inter-segment sales came down from Rs 64.94 crore to Rs 46.21 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 55.63% to Rs 31.93 crore. PBIT of Mfg of Machinery & Equipment segment fell 20.89% to Rs 16.93 crore (accounting for 53.02% of total PBIT). PBIT of Engineering Procurement & Construct segment fell 65.38% to Rs 9.88 crore (accounting for 30.94% of total PBIT). PBIT of Sugar segment fell 46.85% to Rs 11.56 crore (accounting for 36.20% of total PBIT). PBIT of Plant Under Construction reported loss of Rs 6.44 crore compared to profit of Rs 0.28 crore.

PBIT margin of Mfg of Machinery & Equipment segment fell from 6.27% to 5.04%. PBIT margin of Engineering Procurement & Construct segment fell from 4.74% to 1.44%. PBIT margin of Sugar segment fell from 11.63% to 7.52%. PBIT margin of Plant Under Construction segment rose from 5.57% to 325.25%. Overall PBIT margin fell from 6.34% to 2.72%.

Promoters’ stake was 62.43% as of 30 June 2021, compared to 62.39% as of 30 June 2020.

ISGEC Heavy Engineering: Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	1128.38	1070.82	5	5425.57	5882.06	-8
OPM (%)	4.3	8.6		8.4	5.5
OP	48.20	92.28	-48	454.97	324.59	40
Other inc.	5.14	4.03	28	51.76	32.09	61
PBIDT	53.34	96.31	-45	506.73	356.68	42
Interest	11.20	12.85	-13	50.24	41.14	22
PBDT	42.14	83.46	-50	456.49	315.54	45
Dep.	23.85	27.00	-12	100.86	101.19	0
PBT	18.29	56.46	-68	355.63	214.35	66
Share of Profit from Associates	0.05	0.07	-29	0.18	0.10	80
PBT before EO	18.34	56.53	-68	355.81	214.45	66
EO Exp	0.00	0.00		0.00	0.00
PBT after EO	18.34	56.53	-68	355.81	214.45	66
Taxation	4.57	14.67	-69	102.74	65.32	57
PAT	13.77	41.86	-67	253.07	149.13	70
Minority Interest (MI)/Loss from Discontinued operations	0.14	0.64	-78	5.22	4.62	13
PAT after MI	13.63	41.22	-67	247.85	144.51	72
EPS (Rs)*	#	#		33.7	19.7
* EPS is on current equity of Rs 7.35 crore, Face value of Rs 1
# EPS is not annualised due to seasonality of business
** Variance could not be calculated as no previous period figures
Figures in Rs crore
Source: Capitaline Corporate Database

ISGEC Heavy Engineering: Consolidated Segment Results
Segment	% to total	2106 (3)	2006 (3)	Var.(%)	% to total	2103 (12)	2003 (12)	Var.(%)
Sales
Machinery & Equipment - Mfg	29	335.91	341.29	-2	27	1562.84	1612.58	-3
EPC	58	686.06	601.77	14	59	3457.71	3929.01	-12
Sugar	13	153.64	187.05	-18	14	785.60	584.41	34
Others/ Unallocated	0	-1.02	5.65	-118	0	11.93	4.17	186
Total Sales	100	1174.59	1135.76	3	100	5818.08	6130.17	-5
Inter Segment Revenue		46.21	64.94	-29		392.51	248.11	58
Net sales		1128.38	1070.82	5		5425.57	5882.06	-8

PBIT
Machinery & Equipment - Mfg	57	16.93	21.40	-21	41	164.47	84.41	95
EPC	33	9.88	28.54	-65	43	172.37	151.62	14
Sugar	39	11.56	21.75	-47	26	102.59	48.30	112
Others/ Unallocated	-29	-8.73	-2.60	236	-9	-37.81	-18.58	103
Total PBIT	100	29.64	69.09	-57	100	401.62	265.75	51
LESS: Interest expenes		10.55	12.22			44.22	37.94
Other income & unallocable expenses		0.75	0.34			1.59	13.36
PBT		18.34	56.53	-68		355.81	214.45	66
Note: Figures in Rs crore

Previous News

ISGEC Heavy Engineering standalone net profit rises 111.83% in the June 2023 quarter
( Results - Announcements 11-Aug-23 17:18 )

ISGEC Heavy Engineering standalone net profit declines 52.25% in the March 2022 quarter
( Results - Announcements 28-May-22 16:12 )

ISGEC Heavy Engineering consolidated net profit declines 40.65% in the March 2022 quarter
( Results - Announcements 28-May-22 16:16 )

ISGEC Heavy Engineering announces board meeting date
( Corporate News - 27-Jan-24 12:28 )

ISGEC Heavy Engineering fixes record date for interim dividend of Rs 2
( Market Beat - Reports 11-Feb-21 16:47 )

ISGEC Heavy Engineering to conduct AGM
( Corporate News - 15-Jul-23 09:44 )

ISGEC fixes record date for interim dividend of Rs 2
( Corporate News - 12-Feb-21 09:17 )

ISGEC Heavy Engineering standalone net profit declines 35.57% in the December 2017 quarter
( Results - Announcements 15-Feb-18 10:53 )

Isgec successfully commissions modified boiler for Hindalco
( Corporate News - 14-Oct-20 17:43 )

ISGEC Heavy Engineering to hold AGM
( Corporate News - 26-Jul-22 12:26 )

Isgec Heavy Engineering
( Results - Analysis 07-Aug-18 17:05 )