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.

September 2015 quarter results

Sales for the quarter ended September 2015 jumped 23% to Rs 1080.33 crore. OPM fell 90 basis points from 8.7% to 7.8% which limited OP growth at 11% to Rs 84.26 crore.

Other income grew 27% to Rs 11.13 crore. As interest cost jumped 48% to Rs 4.61 crore and depreciation fell 15% to Rs 16..31 crore, PBT rose 19% to Rs 74.47 crore.

Provision for taxation was up 25% to Rs 26.38 crore. Finally PAT grew 17% to Rs 48.09 crore.

Six months results

For the six months ended September 2015, sales grew 10% to Rs 1740.68 crore. OPM remained at 8% which saw OP growing 12% to Rs 139.68 crore.

Other income grew 11% to Rs 22.79 crore. As interest cost grew 9% to Rs 10.42 crore and depreciation fell 8% to Rs 32.72 crore, PBT rose 19% to Rs 119.33 crore.

Provision for taxation was up 23% to Rs 41.97 crore. Finally PAT grew 16% to Rs 77.36 crore.

FY 2015 results

FY 2015 was a 12 month FY for the company while FY 2014 was for 6 month as the company had changed its FY from September to March. Thus variation cannot be compared.

In FY 2015, sales stood at Rs 3277.42 crore. OPM stood at 8.1% which saw OP at Rs 265.56 crore. PBT stood at 218.32 crore. After providing for tax of Rs 75.13 crore, PAT stood at Rs 143.19 crore.

Consolidated FY 2015 results

FY 2015 was a 12 month FY for the company while FY 2014 was for 6 month as the company had changed its FY from September to March. Thus variation cannot be compared.

On consolidated basis, in FY 2015, sales stood at Rs 3953.83 crore. PBT stood at Rs 187.57 crore. After providing for tax of Rs 62.24 crore, PAT stood at Rs 123.33 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 share price trades at Rs 5405.