In FY 2011 the company changed its name from Saraswati Industrial Syndicate Ltd. to Isgec Heavy Engineering Ltd. All businesses were consolidated and now marketed under a common brand name – Isgec.

June 2018 quarter results

Sales for the quarter ended June 2018 jumped 44% to Rs 714.19 crore. OPM improved 280 bps to 7.9%. Thus OP jumped 125% to Rs 56.55 crore.

Other income fell 59% to Rs 7.28 crore. As interest cost fell 40% to Rs 1.18 crore and depreciation stood at Rs 15.47 crore up 3%, PBT went up 87% to Rs 47.18 crore.

Provision for taxation was up 96% to Rs 16.23 crore. Finally PAT grew 83% to Rs 30.95 crore.

Notably in June 2017 quarter the company's sales and net profit had fallen 26% and 60% respectively and current quarter jump is on that low base. June 2018 quarter net profit of Rs 30.95 crore is still lower than June 2016 quarter net profit of Rs 42.06 crore,

FY 2018 results

For FY 2018, sales fell 16% to Rs 2615.37 crore. OPM fell 180 bps to 6.5%. Thus OP fell 34% to Rs 169.86 crore.

Other income fell 22% to Rs 72.34 crore. As interest cost fell 66% to Rs 7.12 crore and depreciation grew 5% to Rs 67.15 crore, PBT went down 37% to Rs 167.93 crore.

Provision for taxation was down 38% to Rs 48.95 crore. Finally PAT fell 37% to Rs 118.98 crore.

Segment results

For the quarter, sales of from the Manufacturing of Machinery Equipment Division jumped 91% to Rs 329.90 crore and accounted for 43% of total. PBIT from the same grew 162% to Rs 39.87 crore and accounted for 68% of total.

For the quarter, sales from the EPC Division grew 24% to Rs 439.59 crore and accounted for 57% of total. PBIT from the same fell 14% to Rs 17.31 crore and accounted for 29% of total.

Valuation

The scrip trades at Rs 5824.