ISGEC HEAVY ENG. 2023-24 Annual Report Analysis

Mon, 5 Aug

ISGEC HEAVY ENG. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ISGEC HEAVY ENG. Income Statement Analysis

• Operating income during the year fell 2.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 7.4% in FY23.
• Depreciation charges increased by 1.9% and finance costs decreased by 7.1% YoY, respectively.
• Other income grew by 104.3% YoY.
• Net profit for the year grew by 24.0% YoY.
• Net profit margins during the year grew from 3.2% in FY23 to 4.1% in FY24.

ISGEC HEAVY ENG. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	63,990	62,193	-2.8%
Other income	Rs m	127	259	104.3%
Total Revenues	Rs m	64,117	62,452	-2.6%
Gross profit	Rs m	4,724	5,188	9.8%
Depreciation	Rs m	1,043	1,062	1.9%
Interest	Rs m	908	843	-7.1%
Profit before tax	Rs m	2,900	3,542	22.1%
Tax	Rs m	845	993	17.5%
Profit after tax	Rs m	2,055	2,549	24.0%
Gross profit margin	%	7.4	8.3
Effective tax rate	%	29.1	28.0
Net profit margin	%	3.2	4.1

Don't Miss: Key Information for Long-term Investors

ISGEC HEAVY ENG. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 47 billion as compared to Rs 40 billion in FY23, thereby witnessing an increase of 16.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 6.1%.
• Current assets rose 12% and stood at Rs 59 billion, while fixed assets rose 9% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 80 billion as against Rs 72 billion during FY23, thereby witnessing a growth of 12%.

ISGEC HEAVY ENG. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,043	25,226	9.5
Current Liabilities	Rs m	40,157	46,761	16.4
Long-term Debt	Rs m	4,329	4,065	-6.1
Total Liabilities	Rs m	71,589	79,852	11.5
Current assets	Rs m	52,684	59,175	12.3
Fixed Assets	Rs m	18,904	20,677	9.4
Total Assets	Rs m	71,589	79,852	11.5

ISGEC HEAVY ENG. Cash Flow Statement Analysis

• ISGEC HEAVY ENG.'s cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 254.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 297.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -255 million from the Rs 669 million net cash flows seen during FY23.

ISGEC HEAVY ENG. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,076	7,352	254.0%
Cash Flow from Investing Activities	Rs m	-584	-2,324	-
Cash Flow from Financing Activities	Rs m	-978	-4,868	-
Net Cash Flow	Rs m	669	-255	-

Current Valuations for ISGEC HEAVY ENG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.7, an improvement from the EPS of Rs 28.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,398.9, stands at 40.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	870.3	845.8
TTM Earnings per share	Rs	28.0	34.7
Diluted earnings per share	Rs	28.0	34.7
Price to Cash Flow	x	10.3	16.4
TTM P/E ratio	x	15.6	40.4
Price / Book Value ratio	x	1.6	2.4
Market Cap	Rs m	37,480	59,325
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for ISGEC HEAVY ENG.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5.2x during FY24, from 4.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 10.1% during FY24, from 8.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 15.0% during FY24, from 13.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 4.2% during FY24, from 4.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	1,608	1,719
Interest coverage	x	4.2	5.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	4.1	4.2
Return on equity	%	8.9	10.1
Return on capital employed	%	13.9	15.0

To see how ISGEC HEAVY ENG. has performed over the last 5 years, please visit here.

ISGEC HEAVY ENG. Share Price Performance

Over the last one year, ISGEC HEAVY ENG. share price has moved up from Rs 742.1 to Rs 1,398.9, registering a gain of Rs 656.8 or around 88.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 70,402.0 (down 4.2%). Over the last one year it has moved up from 43,070.0 to 70,402.0, a gain of 27,332 points (up 63.5%).

Overall, the S&P BSE SENSEX is up 18.5% over the year.

(To know more, check out historical annual results for ISGEC HEAVY ENG. and quarterly results for ISGEC HEAVY ENG.)