ISGEC Heavy Engineering hosted a conference call on May 30, 2023. In the conference call the company was represented by Aditya Puri, Managing Director; Kishore Chatnani, Whole-time Director and CFO Mr. Sanjay Gulati, Whole-time Director and Head-Manufacturing Units.

Key takeaways of the conference call

Consolidated order booking in Q4FY23 was Rs 2482 crore (against Rs 1442 crore in Q4FY22) and for FY23 it is about Rs 6600 crore.  

Order Backlog as end of March 31, 2023 stood at Rs 8321 crore vs Rs 7322 crore as end of march 2022.  Of the order book about 79% are projects and 21% is product orders.  Of the order book about 28% from refineries, 21% from power sector, 14% from Steel/cement/aluminium, 13% from Sugar, 12% from Chemicals/Fert/petrochemicals, 2% railways and 10% from others. Of the order book about 10% is international orders.

International Sales contributed about 17% of Revenue in FY23

 ISGEC Hitachi Zosen (IHZ) order book was about Rs 506 crore as end of March 31, 2023.  Sales revenue of IHZ was about Rs  600 crore in FY23 with PAT margin  close to 2%.

Order booking is good in last 3 months for Eagle Press & Equipment based out of Canada. Last year the company was impacted by low orders from US Auto Industry.  Expect the current fiscal to be good for the company. 

Expect double digit growth in revenue   for FY24.  On standalone basis the growth will be more than 10% and for consolidated entity it will be near about 10%. 

Phillipines Ethanol Plant:  It will be commissioned next quarter and expect to operate at full capacity from Nov 2023 onwards.  In terms of revenue it is function of ethanol price, which is around Rs 125/littre (converted to INR).  So on full year of operation and peak capacity the plant could generate a revenue of about  Rs 600 crore with an EBITDA margin of about 25%. 

No major fund infusion is expected at Phillipines plant going forward in current fiscal.