ISGEC Heavy Engineering Q4 Review - Strong Outperformance From Product Division: ICICI Securities

ISGEC Heavy Engineering Ltd. (Source: Company website)

ISGEC Heavy Engineering Q4 Review - Strong Outperformance From Product Division: 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. has reported a healthy improvement of 290 basis points YoY in standalone margin to 7.4% in Q4 FY21.

This was led by recovery in product segment margins to 14% while engineering procurement and construction margins increased 30 basis points YoY to 4.5% supporting 67% YoY Ebitda growth to Rs 974 million.

Despite increase in receivables, net working capital was under control due to higher payables leading to Rs 2.1 billion cashflow from standalone operations and Rs 3.1 billion from consolidated.

Company was able to reduce standalone debt by Rs 17 billion and is likely to turn net-cash FY22E onwards at the standalone level.

Click on the attachment to read the full report:

ICICI Securities ISGEC Q4FY21 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 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.