BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
ISGEC Heavy Engineering Ltd. reported a standalone revenue growth of 11% year-on-year to Rs 11.5 billion in Q2 FY22.
Standalone Ebitda margin shrunk by a significant 550 basis points year-on-year to 3.1% due to higher cost overheads.
Management guided margins are likely to remain subdued till Q4 FY22 as cost challenges persist.
Due to increased commodity prices, management has been judicious in bidding for orders, and this led to a weak consolidated order intake of Rs 8.5 billion during the quarter.
However, the current consolidated orderbook is strong at Rs 75 billion (1.7x TTM sales).
Factoring-in near term margin stress, we marginally cut standalone earnings by 27% and 15% for FY22E and FY23E respectively.
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