ICICI Securities: ISGEC Heavy Engineering - EPC Margin Outperformance Supports Q1 Earnings
ISGEC Heavy Engineering Ltd. Power Plant (Image Courtesy Company Website)

ICICI Securities: ISGEC Heavy Engineering - EPC Margin Outperformance Supports Q1 Earnings

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. 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 better than expected execution, which we believe was partly due to the booking of certain delayed products that were under inventory during Q4 FY20.

Product segment execution was better than expectations, with a decline of 5% YoY to Rs 2.3 billion. Project segment margins improved 130 basis points YoY to 4.6% limiting standalone earnings decline to 11% YoY at Rs 291 million.

Sugar segment revenues showed strong 87% YoY growth with 360 basis points YoY higher margins leading to 50% YoY growth in consolidated profit after tax.

Despite headwinds, ISGEC was able to book approximately Rs 8 billion worth of orders in Q1 FY21, resulting in standalone orderbook of Rs 62 billion (1.3 times trailing twelve months sales) providing growth visibility.

Click on the attachment to read the full report:

ICICI Securities ISGEC Q1FY21 Results Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.