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.

December 2015 quarter results

Sales for the quarter ended September 2015 jumped 28% to Rs 1013.32 crore. OPM fell 120 basis points from 8.7% to 7.5% which limited OP growth at 11% to Rs 76.37 crore.

Other income grew 53% to Rs 15.00 crore. As interest cost jumped 24% to Rs 4.54 crore and depreciation fell 15% to Rs 15.45 crore, PBT rose 26% to Rs 71.38 crore.

Provision for taxation was up 28% to Rs 24.70 crore. Finally PAT grew 25% to Rs 46.68 crore.

Nine months results

For the nine months ended December 2015, sales grew 16% to Rs 2754.00 crore. OPM fell from 8.2% to 7.8% which saw OP growing 11% to Rs 216.05 crore.

Other income grew 25% to Rs 37.79 crore. As interest cost grew 13% to Rs 14.96 crore and depreciation fell 10% to Rs 48.17 crore, PBT rose 21% to Rs 190.71 crore.

Provision for taxation was up 25% to Rs 66.67 crore. Finally PAT grew 19% to Rs 124.04 crore.

Present in various fields of engineering business

The company has good share in the domestic and overseas markets in Boilers. In recent years it had embarked on supplying turnkey power plants. In addition to the Boiler, it also supplies the Turbo set and balance of plant. This business has come of age. In some cases, it is also doing civil works.

The company has emerged as a leading Sugar Machinery and Sugar Boiler manufacturer both in domestic as well as international markets. It also received a number of orders for export and the Company is striving to become a world leader in this business in the next few years.

Its Process Equipment Division books orders for large Pressure Vessels and Heat Exchangers. It has capacities in Yamunanagar as well as Dahej. The Division also books orders for critical equipment used in Fertilizer sector like Transfer Line, CO2 Absorber, LP/HP Flash Drum.

American Society of Mechanical Engineers (ASME) has approved the Process Equipment Division of the company for manufacturer of equipments for Nuclear Plants and the Company has been awarded the 'N' and 'NPT' stamps.

With a view to broadening its portfolio, the company has ventured into new products, like Feed Water Heaters, Surface Condensers, Breech Lock Heat Exchangers and Electrostatic Precipitators, Castings for Pumps and Valves.

Due to year to year fluctuations in the automobile sector, the Machine Building Division of the company is making efforts to book orders for Presses from other sectors such as Defence, White Goods and Forgings. Exports are also being given a lot of thrust.

The company also manufactures heavier and more complex castings in the Steel Casting Unit of the company. This offers heavier and more complex castings to the market including P-91 and Duplex Stainless Steel Castings. P-91 is an alloy which is used for making castings to be used under very high temperature and pressure, such as Super critical grade steam turbine castings. Duplex grade of stainless steel is used for making castings for special Pumps in order to increase corrosive resistance.

Valuation

The board of directors has declared an interim dividend of Rs 10 per share with the record date being 12 Feb 2016.

The share price trades at Rs 4950.