Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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.)

Annual Report FAQs

What is the current share price of ISGEC HEAVY ENG.?

ISGEC HEAVY ENG. currently trades at Rs 1,312.0 per share. You can check out the latest share price performance of ISGEC HEAVY ENG. here...

What was the revenue of ISGEC HEAVY ENG. in FY24? How does it compare to earlier years?

The revenues of ISGEC HEAVY ENG. stood at Rs 62,452 m in FY24, which was down -2.6% compared to Rs 64,117 m reported in FY23.

ISGEC HEAVY ENG.'s revenue has grown from Rs 59,142 m in FY20 to Rs 62,452 m in FY24.

Over the past 5 years, the revenue of ISGEC HEAVY ENG. has grown at a CAGR of 1.4%.

What was the net profit of ISGEC HEAVY ENG. in FY24? How does it compare to earlier years?

The net profit of ISGEC HEAVY ENG. stood at Rs 2,549 m in FY24, which was up 24.0% compared to Rs 2,055 m reported in FY23.

This compares to a net profit of Rs 1,150 m in FY22 and a net profit of Rs 2,531 m in FY21.

Over the past 5 years, ISGEC HEAVY ENG. net profit has grown at a CAGR of 14.3%.

What does the cash flow statement of ISGEC HEAVY ENG. reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ISGEC HEAVY ENG. reveals:

  • Cash flow from operations increased in FY24 and stood at Rs 7,352 m as compared to Rs 2,076 m in FY23.
  • Cash flow from investments decreased in FY24 and stood at Rs -2,324 m as compared to Rs -584 m in FY23.
  • Cash flow from financial activity decreased in FY24 and stood at Rs -4,868 m as compared to Rs -978 m in FY23.

Here's the cash flow statement of ISGEC HEAVY ENG. for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations1,0352,278-7032,0767,352
From Investments-3,470-1,860-1,414-584-2,324
From Financial Activity2,954-8921,758-978-4,868
Net Cashflow713-252-533669-255

What does the Key Ratio analysis of ISGEC HEAVY ENG. reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ISGEC HEAVY ENG. reveals:

  • Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 7.4% in FY23.
  • Net profit margins grew from 3.2% in FY23 to 4.1% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.2 as compared to 0.2 in FY23.

Here's the ratio/financial analysis of ISGEC HEAVY ENG. for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)5.98.66.17.48.3
Net Profit Margin (%)2.54.72.13.24.1
Debt to Equity Ratio (x)0.20.20.20.20.2

Equitymaster requests your view! Post a comment on "ISGEC HEAVY ENG. 2023-24 Annual Report Analysis". Click here!