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 2017 quarter results

Sales for the quarter ended September 2017 stood at Rs 639.25 crore. OPM was at 6.7%. Thus OP stood at Rs 42.98 crore.

Latest sales figures are net of GST and previous are gross of excise and hence not comparable.

Other income grew 50% to Rs 37.42 crore. As interest cost fell 64% to Rs 1.70 crore and depreciation grew 2% to Rs 16.06 crore, PBT went down 6% to Rs 62.64 crore.

Provision for taxation was down 31% to Rs 16.64 crore. Finally PAT grew 7% to Rs 46.00 crore.

Six months results

For the six months, sales stood at Rs 1133.69 crore. OPM was at 6.0%. Thus OP stood at Rs 68.12 crore.

Latest sales figures are net of GST and previous are gross of excise and hence not comparable.

Other income grew 22% to Rs 55.34 crore. As interest cost fell 63% to Rs 3.67 crore and depreciation grew 3% to Rs 31.95 crore, PBT went down 31% to Rs 87.84 crore.

Provision for taxation was down 40% to Rs 24.92 crore. Finally PAT fell 26% to Rs 62.92 crore.

Has identified various growth strategy initiatives through slew of technology tie-ups

The company has identified various growth strategy initiatives.

One of the business opportunities identified is Air Pollution Control Equipment. The company has concluded technology tie-up arrangements to cover almost the entire range of Air Pollution Control Equipment required for coal based power plants as also some equipment for other industries.

These include the incorporation of a Joint Venture Company named Isgec Redecam Enviro Solutions Private Limited, with Redecam S.p.A, Italy, for Bag Filters and Hybrid Filters for particulate Matter Reduction in Cement and Steel Plants.

The other technology tie-ups were for Selective Non-Catalytic Reduction Units with Fuel Tech, USA for reduction of Nitrogen Oxide (NOx) in Thermal Power Plants and Cement Plants, and for Wet Flue Gas Desulfurization Units with Babcock Power Environmental, USA for reduction of Sulfur Dioxide (SOx) in Thermal Power Plants.

Technology transfer agreements with regard to other equipment executed in FY 2017 are as under:-

Cement Machinery:

(i) Pyro Processing and Clinker Cooler Units for Cement Plants with Claudius Peters, Germany and Partner Teknik, Turkey.

Presses:

(i) Hot Stamping Presses with AP&T, Sweden.

Water Treatment:

(i) Industrial Waste Water Treatment and Desalination Plants with RWL Water, Israel.

Process Plant Equipment:

(i) Screw Plug Heat Exchangers and Process Waste Heater Boilers with TEi, USA.

(ii) Process Fired Heater with Riley Power, USA.

These tie-ups are expected to result in business in the years to come. No major investments are envisaged for the manufacture of these products.

Valuation

The share price trades at Rs 6930.