Results     31-May-24
Analysis
ISGEC Heavy Engineering
Weak show
Consolidated net sales (including other operating income) of ISGEC Heavy Engineering for the quarter ended Mar 2024 has declined 8.56% to Rs 1867.96 crore.  

Operating profit margin has declined from 8.05% to 7.37%, leading to 16.30% decline in operating profit to Rs 137.60 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 31.69% to 34.67%.   Purchase of finished goods cost rose from 28.42% to 33.15%.   Employee cost increased from 6.14% to 6.46%.   Other expenses fell from 25.27% to 18.90%.   Other direct service cost fell from 10.16% to 5.61%.   

Other income fell 29.03% to Rs 4.01 crore.  PBIDT fell 16.72% to Rs 141.61 crore.  Provision for interest fell 37.05% to Rs 11.01 crore.   

PBDT fell 14.39% to Rs 130.6 crore.  Provision for depreciation rose 5.34% to Rs 28.2 crore.   

Profit before tax down 18.59% to Rs 102.40 crore.  Provision for tax was expense of Rs 30.36 crore, compared to Rs 32.64 crore.  Effective tax rate was 29.64% compared to 25.95%.

Minority interest decreased 89.19% to Rs 0.76 crore.  Net profit attributable to owners of the company decreased 17.22% to Rs 71.30 crore.  

Sales of Mfg of Machinery & Equipment segment has gone down 11.24% to Rs 741.30 crore (accounting for 35.73% of total sales).  Sales of Engineering Procurement & Construct segment has gone down 4.54% to Rs 1,038.94 crore (accounting for 50.08% of total sales).  Sales of Sugar segment rose 61.92% to Rs 246.72 crore (accounting for 11.89% of total sales).  Sales of Plant Under Construction segment has gone up 79.07% to Rs 0.77 crore (accounting for 0.04% of total sales).  Sales of Ethanol segment has gone down 9.10% to Rs 46.95 crore (accounting for 2.26% of total sales).  Inter-segment sales rose Rs 85.66 crore to Rs 203.36 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 15.64% to Rs 119.64 crore.  PBIT of Mfg of Machinery & Equipment segment rose 8.10% to Rs 73.12 crore (accounting for 61.12% of total PBIT).  PBIT of Engineering Procurement & Construct segment fell 1.53% to Rs 40.57 crore (accounting for 33.91% of total PBIT).  PBIT of Sugar segment fell 63.62% to Rs 10.23 crore (accounting for 8.55% of total PBIT).  PBIT of Plant Under Construction segment rose 32.14% to Rs 5.55 crore (accounting for 4.64% of total PBIT).  PBIT of Ethanol reported loss of Rs 9.83 crore compared to profit of Rs 0.66 crore.  

PBIT margin of Mfg of Machinery & Equipment segment rose from 8.10% to 9.86%.  PBIT margin of Engineering Procurement & Construct segment rose from 3.79% to 3.90%.  PBIT margin of Sugar segment fell from 18.46% to 4.15%.  PBIT margin of Plant Under Construction segment fell from 976.74% to 720.78%.  PBIT margin of Ethanol segment fell from 1.28% to 20.94%.  Overall PBIT margin fell from 6.66% to 5.77%.  



Full year results analysis.

Net sales (including other operating income) of ISGEC Heavy Engineering has declined 2.81% to Rs 6219.34 crore.  Sales of Mfg of Machinery & Equipment segment has gone down 1.21% to Rs 2,263.08 crore (accounting for 33.77% of total sales).  Sales of Engineering Procurement & Construct segment has gone up 2.01% to Rs 3,459.96 crore (accounting for 51.63% of total sales).  Sales of Sugar segment fell 14.40% to Rs 769.25 crore (accounting for 11.48% of total sales).  Sales of Plant Under Construction segment has gone up 16,932.00% to Rs 207.79 crore (accounting for 3.10% of total sales).  Sales of Ethanol segment has gone down 99.53% to Rs 1.03 crore (accounting for 0.02% of total sales).  Inter-segment sales rose Rs 408.00 crore to Rs 482.09 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 16.31% to Rs 433.49 crore.  PBIT of Mfg of Machinery & Equipment segment rose 45.41% to Rs 230.69 crore (accounting for 53.22% of total PBIT).  PBIT of Engineering Procurement & Construct segment fell 9.31% to Rs 134.16 crore (accounting for 30.95% of total PBIT).  PBIT of Sugar segment fell 23.40% to Rs 72.65 crore (accounting for 16.76% of total PBIT).  PBIT of Plant Under Construction reported profit of Rs 23.96 crore compared to loss of Rs 36.51 crore.  PBIT of Ethanol reported loss of Rs 27.97 crore compared to profit of Rs 7.78 crore.  

PBIT margin of Mfg of Machinery & Equipment segment rose from 6.93% to 10.19%.  PBIT margin of Engineering Procurement & Construct segment fell from 4.36% to 3.88%.  PBIT margin of Sugar segment fell from 10.55% to 9.44%.  PBIT margin of Plant Under Construction segment rose from negative 2,992.62% to 11.53%.  PBIT margin of Ethanol segment fell from 3.57% to 2,715.53%.  Overall PBIT margin rose from 5.48% to 6.47%.  

Operating profit margin has jumped from 7.10% to 8.01%, leading to 9.56% rise in operating profit to Rs 498.06 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 30.10% to 31.41%.   Purchase of finished goods cost fell from 29.55% to 29.46%.   Employee cost increased from 7.56% to 7.97%.   Other expenses fell from 25.35% to 23.33%.   Other direct service cost fell from 10.18% to 9.69%.   

Other income rose 104.42% to Rs 25.9 crore.  PBIDT rose 12.13% to Rs 523.96 crore.  Provision for interest fell 12.76% to Rs 63.68 crore.  

PBDT rose 16.74% to Rs 460.28 crore.  Provision for depreciation rose 1.86% to Rs 106.24 crore.  

Profit before tax grew 22.09% to Rs 354.04 crore.  Share of profit/loss was 200% higher at Rs 0.12 crore.  Provision for tax was expense of Rs 99.29 crore, compared to Rs 84.49 crore.  Effective tax rate was 28.04% compared to 29.13%.

Minority interest increased 23.76% to Rs 11.20 crore.  Net profit attributable to owners of the company increased 24.01% to Rs 243.67 crore.  

Equity capital stood at Rs 7.35 crore as of 31 March 2024 to Rs 7.35 crore as of 31 March 2023.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 62.43% as of 31 March 2024 ,compared to 62.43% as of 31 March 2023 .  

Loan funds declined from Rs 1,235.30 crore as of 31 March 2023 to Rs 814.38 crore as of 31 March 2024.  Inventories rose to Rs 1,410.33 crore as of 31 March 2024 from Rs 1,163.84 crore as of 31 March 2023.  Sundry debtors were higher at Rs 2,928.69 crore as of 31 March 2024 compared to Rs 2,819.49 crore as of 31 March 2023.  

Fixed assets increased to Rs 1,905.10 crore as of 31 March 2024 from Rs 1,734.85 crore as of 31 March 2023.  Intangible assets declined from Rs 17.35 crore to Rs 10.45 crore.  

Cash and bank balance declined from Rs 210.51 crore as of 31 March 2023 to Rs 191.87 crore as of 31 March 2024.  Investments declined from Rs 33.35 crore as of 31 March 2023 to Rs 28.52 crore as of 31 March 2024.  Cash flow from operating activities increased to Rs 735.17 crore for year ended March 2024 from Rs 207.65 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 245.10 crore, compared to Rs 145.23 crore during the year ended March 2023.  



ISGEC Heavy Engineering : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)1,867.962,042.74-8.566,219.346,399.04-2.81
OPM (%)7.378.05-68 bps8.017.1090 bps
OP137.60164.39-16.30498.06454.619.56
Other Inc.4.015.65-29.0325.9012.67104.42
PBIDT141.61170.04-16.72523.96467.2812.13
Interest11.0117.49-37.0563.6872.99-12.76
PBDT130.60152.55-14.39460.28394.2916.74
Depreciation28.226.775.34106.24104.31.86
PBT102.40125.78-18.59354.04289.9922.09
Share of Profit/(Loss) from Associates0.020.0200.120.04200.00
PBT before EO102.42125.8-18.59354.16290.0322.11
EO Income00-00-
PBT after EO102.42125.8-18.59354.16290.0322.11
Taxation30.3632.64-6.9999.2984.4917.52
PAT72.0693.16-22.65254.87205.5424.00
Minority Interest (MI)0.767.03-89.1911.29.0523.76
Net profit71.386.13-17.22243.67196.4924.01
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations71.386.13-17.22243.67196.4924.01
EPS (Rs)*9.7011.71-17.2233.1426.7224.01
* EPS is on current equity of Rs 7.35 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


ISGEC Heavy Engineering : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)
Sales
Mfg of Machinery & Equipment35.73741.30835.18-11.2433.772,263.082,290.72-1.21
Engineering Procurement & Construct50.081,038.941,088.38-4.5451.633,459.963,391.872.01
Sugar11.89246.72152.3761.9211.48769.25898.62-14.40
Plant Under Construction0.040.770.4379.073.10207.791.2216,932.00
Ethanol2.2646.9551.65-9.100.021.03217.96-99.53
Total Reported Sales100.002,074.682,128.01-2.51100.006,701.116,800.39-1.46
Less: Inter segment revenues 203.3685.66137.40 482.09408.0018.16
Net Sales100.001,871.322,042.35-8.37100.006,219.026,392.39-2.71
PBIT
Mfg of Machinery & Equipment61.1273.1267.648.1053.22230.69158.6545.41
Engineering Procurement & Construct33.9140.5741.20-1.5330.95134.16147.94-9.31
Sugar8.5510.2328.12-63.6216.7672.6594.84-23.40
Plant Under Construction4.645.554.2032.145.5323.96-36.51LP
Ethanol-8.22-9.830.66PL-6.45-27.977.78PL
Total PBIT100.00119.64141.82-15.64100.00433.49372.7016.31
Less : Interest9.1516.62-44.9559.1868.21-13.24
Add: Other un-allcoable-8.070.60PL-20.15-14.46-39.35
PBIT Margin(%)
Mfg of Machinery & Equipment 9.868.10176.49 10.196.93326.79
Engineering Procurement & Construct 3.903.7911.95 3.884.36-48.41
Sugar 4.1518.46-1,430.87 9.4410.55-110.97
Plant Under Construction 720.78976.74-25,596.50 11.53-2,992.623,00,415.38
Ethanol -20.941.28-2,221.50 -2,715.533.57-2,71,910.34
PBT100.00102.42125.80-18.59100.00354.16290.0322.11
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