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.

March 2016 quarter results

Sales for the quarter ended March 2016 jumped 23% to Rs 1124.79 crore. OPM fell 40 basis points from 7.9% to 7.5% which limited OP growth to 18% to Rs 84.32 crore.

Other income fell 9% to Rs 10.94 crore. As interest cost jumped 54% to Rs 4.72 crore and depreciation fell 11% to Rs 16.13 crore, PBT rose 22% to Rs 74.41 crore.

Provision for taxation was up 13% to Rs 24.46 crore. Finally PAT grew 27% to Rs 49.95 crore.

FY 2016 results

For FY 2016, sales grew 18% to Rs 3878.79 crore. OPM fell from 8.1% to 7.7% which saw OP growing 13% to Rs 300.37 crore.

Other income grew 15% to Rs 48.73 crore. As interest cost grew 11% to Rs 19.68 crore and depreciation fell 10% to Rs 64.30 crore, PBT rose 21% to Rs 264.12 crore.

Provision for taxation was up 21% to Rs 91.13 crore. Finally PAT grew 22% to Rs 173.99 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

In addition to Interim Dividend of Rs. 10 per Equity Share of Rs 10 each (already disbursed), the Board of Directors recommends a Final Dividend of Rs. 10 per Equity Share of Rs 10 each, out of profits of the company, for FY 2016, subject to the approval.

The share price trades at Rs 4766.