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Isgec Heavy Engineering reported 31% rise in net profit to Rs 42.48 crore mainly due to 53% jump in other income, supported by 6% fall in interest and depreciation. OPM also went up 50 basis points to 9.3% on 1% lower sales at Rs 668.80 crore.
Isgec Heavy Engineering has a history of 80 years and is a diversified heavy engineering company with interests in Process Equipment, EPC Power Plants, Boilers, Sugar Plants & Machinery, Mechanical & Hydraulic Presses, Castings, Contract Manufacturing, and Trading.
Currently the investment decisions in India are few and it has affected the capital goods industry adversely. Isgec, due to intensive efforts towards value engineering, cost control and increase in productivity, has been able to withstand the competition and secure sufficient orders to keep its shop fully booked.
The outlook for FY 2017 appears to be stable, though we may witness fluctuations in quarter to quarter performance.
The Management continues to look for new technologies and new diversification areas so as to broaden its portfolio of products and also move into higher value adding businesses. Company is undertaking an exercise on growth strategy - to identify high potential new products, businesses, markets and partners. The Company has engaged a leading consultancy firm to provide consultancy and develop strategies for achieving sustainable growth over the next 5 to 7 years. The work is in progress.
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