Results 16-Nov-21
Analysis
ISGEC Heavy Engineering
Sales growth restricted to marginal 2% as EPC and Sugar play truant
Consolidated net sales (including other operating income) of ISGEC Heavy Engineering for the quarter ended Sep 2021 has increased 2% to Rs 1376.11 crore. Operating profit margin has declined from 10.4% to 3.4%, leading to 67% decline in operating profit to Rs 46.45 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 17.05% to 18.28%. Purchase of finished goods cost rose from 40.23% to 43.16%. Employee cost increased from 7.42% to 8.16%. Other expenses rose from 24.05% to 26.76%. Other direct service cost rose from 11.66% to 13.03%. Other income fell 56% to Rs 3.09 crore. PBIDT fell 66% to Rs 49.54 crore. Provision for interest fell 17% to Rs 11.51 crore. PBDT fell 72% to Rs 38.03 crore. Provision for depreciation fell 8% to Rs 24.35 crore. Profit before tax down 87% to Rs 13.68 crore. Provision for tax was expense of Rs 3.57 crore, compared to Rs 29.35 crore. Effective tax rate was 26.17% compared to 27.39%. Net profit attributable to owners of the company decreased 86% to Rs 10.52 crore after accounting for 153% fall in MI (share of loss) of Rs 0.45 crore.
Upside in revenue was largely due to Machinery & Equipment manufacturing (MEM) and EPC that registered higher revenue. While revenue of MEM was up 29% to Rs 396.32 crore (or 28% of sales) that of EPC was up by marginal 1% to Rs 880.87 crore. However the revenue of Sugar was down 23% to Rs 167.85 crore and that of Ethanol was negative 13.28 crore against positive Rs 7.96 crore. The revenue of others/unallocated was negative Rs 1.13 crore.
EBIT was lower by 79% to Rs 25.54 crore with profit of all MEM, EPC and Sugar stand lower. While segment profit of MEM was down 53% to RS 21 crore (82% of EBIT) that of EPC was down 71% to Rs 13.49 crore. The segment profit of sugar was down 26% to Rs 22.58 crore. The Ethanol reported a loss of Rs 17.34 crore against a profit of Rs 3.15 crore in the corresponding previous period.
Half-yearly performance
Net sales (including other operating income) of ISGEC Heavy Engineering has increased 3.82% to Rs 2507.61 crore. Operating profit margin has declined from 9.63% to 3.90%, leading to 57.98% decline in operating profit to Rs 97.77 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 22.41% to 22.56%. Purchase of finished goods cost rose from 36.83% to 39.73%. Employee cost increased from 8.17% to 8.41%. Other expenses rose from 22.41% to 25.29%. Other direct service cost rose from 9.78% to 11.44%.
Other income fell 53.71% to Rs 5.11 crore. PBIDT fell 57.79% to Rs 102.88 crore. Provision for interest fell 14.98% to Rs 22.71 crore. PBDT fell 63.06% to Rs 80.17 crore. Provision for depreciation fell 9.87% to Rs 48.2 crore. Profit before tax down 80.45% to Rs 31.97 crore. Share of profit/loss was 93.33% lower at Rs 0.01 crore. Provision for tax was expense of Rs 8.14 crore, compared to Rs 44.02 crore. Effective tax rate was 25.45% compared to 26.89%. Net profit attributable to owners of the company decreased 79.57% to Rs 24.15 crore.
Equity capital stood at Rs 7.35 crore as of 30 September 2021 to Rs 7.35 crore as of 30 September 2020. Per share face Value remained same at Rs 1.00. Promoters’ stake was 62.43% as of 30 September 2021, compared to 62.39% as of 30 September 2020.
ISGEC Heavy Engineering: Consolidated Results
2109 (3)
2009 (3)
Var. (%)
2109 (6)
2009 (6)
Var. (%)
2103 (12)
2003 (12)
Var. (%)
Sales
1376.11
1344.59
2
2507.61
2415.41
4
5425.57
5882.06
-8
OPM (%)
3.4
10.4
3.9
9.6
8.4
5.5
OP
46.45
140.41
-67
97.77
232.69
-58
454.97
324.59
40
Other inc.
3.09
7.01
-56
5.11
11.04
-54
51.76
32.09
61
PBIDT
49.54
147.42
-66
102.88
243.73
-58
506.73
356.68
42
Interest
11.51
13.86
-17
22.71
26.71
-15
50.24
41.14
22
PBDT
38.03
133.56
-72
80.17
217.02
-63
456.49
315.54
45
Dep.
24.35
26.48
-8
48.20
53.48
-10
100.86
101.19
0
PBT
13.68
107.08
-87
31.97
163.54
-80
355.63
214.35
66
Share of Profit from Associates
-0.04
0.08
-150
0.01
0.15
0.18
0.10
80
PBT before EO
13.64
107.16
-87
31.98
163.69
-80
355.81
214.45
66
EO Exp
0.00
0.00
0.00
0.00
0.00
0.00
PBT after EO
13.64
107.16
-87
31.98
163.69
-80
355.81
214.45
66
Taxation
3.57
29.35
-88
8.14
44.02
-82
102.74
65.32
57
PAT
10.07
77.81
-87
23.84
119.67
-80
253.07
149.13
70
Minority Interest (MI)/Loss from Discontinued operations
-0.45
0.85
-153
-0.31
1.49
999
5.22
4.62
13
PAT after MI
10.52
76.96
-86
24.15
118.18
-80
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
Segment
% to total
2109 (3)
2009 (3)
Var.(%)
% to total
2109 (6)
2009 (6)
Var.(%)
% to total
2103 (12)
Var.(%)
Sales
Machinery & Equipment - Mfg
28
396.32
308.31
29
28
732.23
649.60
13
27
1562.84
-3
EPC
62
880.87
873.50
1
60
1566.93
1475.27
6
59
3457.71
-12
Sugar
12
167.85
218.73
-23
12
324.61
405.78
-20
14
785.60
34
Ethanol
-1
-13.28
7.96
PL
-1
-15.26
12.99
PL
0
10.81
Others/ Unallocated
0
-1.13
-0.09
1156
0
-0.17
0.53
-132
0
1.12
-73
Total Sales
100
1430.63
1408.41
2
100
2608.34
2544.17
3
100
5818.08
-5
Inter Segment Revenue
54.52
63.82
-15
100.73
128.76
392.51
58
Net sales
1376.11
1344.59
2
2507.61
2415.41
5425.57
-8
PBIT
Machinery & Equipment - Mfg
82
21.00
44.61
-53
69
37.93
66.01
-43
41
164.47
95
EPC
53
13.49
45.83
-71
42
23.37
74.37
-69
43
172.37
14
Sugar
88
22.58
30.40
-26
62
34.14
52.15
-35
26
102.59
112
Ethanol
-68
-17.34
3.15
PL
-43
-23.78
3.43
PL
-2
-8.70
-118
Others/ Unallocated
-56
-14.19
-3.46
310
-30
-16.48
-6.34
160
-7
-29.11
57
Total PBIT
100
25.54
120.53
-79
100
55.18
189.62
-71
100
401.62
28
LESS: Interest expenes
11.00
13.01
21.55
25.23
44.22
Other income & unallocable expenses
0.90
0.36
1.65
0.70
1.59
PBT
13.64
107.16
-87
31.98
163.69
-80
355.81
35
Note: Figures in Rs crore
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