|
ISGEC Heavy Engineering hosted a
conference call on Feb 14, 2023. In the conference call the company was
represented by Aditya Puri, Managing Director; Kishore Chatnani, Whole-time
Director and CFO; and Sanjay Gulati, Whole-time Director and Head-Manufacturing
Units.
Key
takeaways of the call
Order
intake in Q3FY24 was Rs 1365 crore as against Rs 1388 crore in Q3FY23.
Order book
on hand as end of Dec 2023 stood at Rs 8584 crore (against Rs 8321 crore as end
of March 2023) and of which 71% is projects and 29% is manufacturing. Moreover of the order book about 12% is
export orders and balance is domestic. Order
book is well diversified across sectors.
Hitachi JV
order book is Rs 945 crore as end of Dec 31, 2023.
Enquiries
are strong for all the addressable sector of the company. Order booking is lacklustre in last few months
but deferrals of finalising of orders in some sectors do happen. Export enquiries have also picked up.
Mfg of
refined sugar also started. Ethanol plant is operating at full capacity. GOI
refused exports and diversion of cane to ethanol to tide over expected fall in
sugar production.
Commercial
production of Philippines plant is expected to commence by end of this month.
GOI has
banned manufacturing of ethanol using cane juice/ ‘B’ Heavy molasses. The GOI
has increased the price of ethanol using ‘C’ Heavy molasses. This is done to
reign in sugar price in the country as the country expect fall in sugar
production.
The company
has planned a capex of Rs 17 crore to make its ethanol plant flexible to process ‘C’
heavy molasses also apart from ‘B’ Heavy etc.
Once the GOI allows process of ‘B’ Heavy molasses it can come back to
process ‘B’ heavy molasses.
Q4FY24 is
going to be better. In manufacturing there are WIP whose despatch got delayed.
The revenue of WIP will be completed/despatched in Q4 and revenue will be
booked. So margin will also be better in Q4FY24.
EPC margin
will catch up 4.4% (Registered in FY23) in Q4FY24 and expect to reach 5.5% in
fy25.
Long
gestation/FGD projects will get completed within current fiscal. The long gestation projects come down to
stand at Rs 200 crore.
|