ISGEC Heavy Engineering Q2 Review - Cost Pressures Hit Margins; Execution Muted: ICICI Securities

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..Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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.

ISGEC Heavy Engineering Q2 Review - Cost Pressures Hit Margins; Execution Muted: ICICI Securities

ISGEC Heavy Engineering Q2 Review - Cost Pressures Hit Margins; Execution Muted: ICICI Securities

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