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