ISGEC Heavy Engineering

Consolidated net sales (including other operating income) of ISGEC Heavy Engineering for the quarter ended Mar 2025 has declined 6.61% to Rs 1744.4 crore. Operating profit margin has jumped from 7.37% to 8.72%, leading to 10.50% rise in operating profit to Rs 152.05 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 34.67% to 35.41%. Purchase of finished goods cost fell from 33.15% to 27.76%. Employee cost increased from 6.46% to 7.29%. Other expenses rose from 18.90% to 21.71%. Other direct service cost rose from 5.61% to 8.64%.

Other income fell 34.41% to Rs 2.63 crore. PBIDT rose 9.23% to Rs 154.68 crore. Provision for interest rose 21.62% to Rs 13.39 crore. PBDT rose 8.19% to Rs 141.29 crore. Provision for depreciation fell 58.97% to Rs 11.57 crore. Profit before tax grew 26.68% to Rs 129.72 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 31.66 crore, compared to Rs 30.36 crore. Effective tax rate was 24.41% compared to 29.64%.

Minority interest increased 801.32% to Rs 6.85 crore. Net profit attributable to owners of the company increased 27.92% to Rs 91.21 crore.

Sales of Mfg of Machinery & Equipment segment has gone down 9.99% to Rs 667.24 crore (accounting for 35.06% of total sales). Sales of Engineering Procurement & Construct segment has gone down 5.42% to Rs 982.68 crore (accounting for 51.63% of total sales). Sales of Sugar segment fell 24.51% to Rs 186.26 crore (accounting for 9.79% of total sales). Sales of Ethanol segment has gone up 42.73% to Rs 67.01 crore (accounting for 3.52% of total sales). Inter-segment sales came down from Rs 203.36 crore to Rs 158.79 crore.
Profit before interest, tax and other unallocable items (PBIT) has jumped 15.57% to Rs 138.27 crore. PBIT of Mfg of Machinery & Equipment segment fell 5.46% to Rs 69.13 crore (accounting for 50.00% of total PBIT). PBIT of Engineering Procurement & Construct segment rose 12.72% to Rs 45.73 crore (accounting for 33.07% of total PBIT). PBIT of Sugar segment rose 51.91% to Rs 15.54 crore (accounting for 11.24% of total PBIT). PBIT of Ethanol reported profit of Rs 7.87 crore compared to loss of Rs 9.83 crore.
PBIT margin of Mfg of Machinery & Equipment segment rose from 9.86% to 10.36%. PBIT margin of Engineering Procurement & Construct segment rose from 3.90% to 4.65%. PBIT margin of Sugar segment rose from 4.15% to 8.34%. PBIT margin of Ethanol segment rose from negative 20.94% to 11.74%. Overall PBIT margin rose from 5.77% to 7.27%.

Full year results analysis.

Net sales (including other operating income) of ISGEC Heavy Engineering has increased 3.26% to Rs 6422.28 crore.

Operating profit margin has jumped from 8.01% to 9.02%, leading to 16.33% rise in operating profit to Rs 579.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 31.41% to 31.00%. Purchase of finished goods cost fell from 29.46% to 28.28%. Employee cost increased from 7.97% to 8.56%. Other expenses fell from 23.33% to 23.22%. Other direct service cost fell from 9.69% to 9.63%.

Other income rose 51.89% to Rs 39.34 crore. PBIDT rose 18.09% to Rs 618.74 crore. Provision for interest fell 38.29% to Rs 39.3 crore. Loan funds rose to Rs 860.51 crore as of 31 March 2025 from Rs 814.38 crore as of 31 March 2024. Inventories rose to Rs 1,477.47 crore as of 31 March 2025 from Rs 1,410.33 crore as of 31 March 2024. Sundry debtors were lower at Rs 2,832.64 crore as of 31 March 2025 compared to Rs 2,928.69 crore as of 31 March 2024. Cash and bank balance declined from Rs 191.87 crore as of 31 March 2024 to Rs 146.49 crore as of 31 March 2025. Investments rose to Rs 85.39 crore as of 31 March 2025 from Rs 28.52 crore as of 31 March 2024 .

PBDT rose 25.89% to Rs 579.44 crore. Provision for depreciation fell 3.96% to Rs 102.03 crore. Fixed assets declined from Rs 1,905.10 crore as of 31 March 2024 to Rs 1,029.60 crore as of 31 March 2025. Intangible assets declined from Rs 10.45 crore to Rs 10.02 crore.

Profit before tax grew 34.85% to Rs 477.41 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 121.71 crore, compared to Rs 99.29 crore. Effective tax rate was 25.49% compared to 28.04%.

Minority interest increased 31.52% to Rs 14.73 crore. Net profit attributable to owners of the company increased 39.93% to Rs 340.97 crore.

Total income from operations for the year ended March 31, 2025, in Consolidated Financial Results, includes a:: 1,846.12 lakhs on account of reversal of provision made for additional cane price payable in one of our subsidiaries, which is no longer payable in the opinion of management and the legal counsel.
Sales of Mfg of Machinery & Equipment segment has gone up 10.48% to Rs 2,500.34 crore (accounting for 36.39% of total sales). Sales of Engineering Procurement & Construct segment has gone up 0.79% to Rs 3,487.41 crore (accounting for 50.75% of total sales). Sales of Sugar segment fell 11.99% to Rs 677.04 crore (accounting for 9.85% of total sales). Sales of Ethanol segment has gone down 0.38% to Rs 207.00 crore (accounting for 3.01% of total sales). Inter-segment sales came down from Rs 482.09 crore to Rs 449.51 crore.
Profit before interest, tax and other unallocable items (PBIT) has jumped 22.36% to Rs 530.44 crore. PBIT of Mfg of Machinery & Equipment segment rose 26.67% to Rs 292.22 crore (accounting for 55.09% of total PBIT). PBIT of Engineering Procurement & Construct segment rose 19.72% to Rs 160.61 crore (accounting for 30.28% of total PBIT). PBIT of Sugar segment fell 19.44% to Rs 58.53 crore (accounting for 11.03% of total PBIT). PBIT of Ethanol segment fell 20.37% to Rs 19.08 crore (accounting for 3.60% of total PBIT).
PBIT margin of Mfg of Machinery & Equipment segment rose from 10.19% to 11.69%. PBIT margin of Engineering Procurement & Construct segment rose from 3.88% to 4.61%. PBIT margin of Sugar segment fell from 9.44% to 8.64%. PBIT margin of Ethanol segment fell from 11.53% to 9.22%. Overall PBIT margin rose from 6.47% to 7.72%.

lsgec Investments Pte. Limited, Singapore (IIPL), a wholly owned subsidiary of the Company, had entered into a Sale and Purchase Agreement (SPA) with a Buyer in the month of December 2024 to sell its entire shareholding in its wholly owned subsidiary Bioeq Energy Holding One, Cayman Islands for USO 10 Million (i.e., approximately Rs.85.47 Crores as on March 31, 2025). The transaction is experiencing delays and we anticipate completing the transaction by July 15, 2025. Along with the SPA: i) the Company had also entered into an agreement to assign its trade receivables due from one of the step-down subsidiaries of IIPL at book value of USO 39.07 million (approximately Rs. 334 crores as on March 31, 2025); and ii) IIPL had also entered into an agreement to assign its loan and interest receivables from the step-down subsidiaries of IIPL at book value of USO 29.80 million (Rs.255 crores) to the Buyer. Additionally, the Company`s Corporate Guarantees of USO 11 {approximately Rs. 94 crores) million and Standby Letter of Credit of USO 23 million {approximately Rs. 197 crores) given as security for the various banking facilities availed by the step-down subsidiaries of IIPL were to be released on payment of outstanding loans to their banks by the Buyer.

Dividend

The Board has recommended a final dividend of Rs.5/- (Rupees Five only) per equity share of Re.1/- each, out of the profits of the Company, for the financial year 2024-25. The Dividend recommended is subject to the approval of the shareholders at forthcoming Annual General Meeting. The Dividend, if approved by the shareholders at forthcoming Annual General Mee ' `c. paid within a period of 30 days from the date of declaration.

Others

Equity capital stood at Rs 7.35 crore as of 31 March 2025 to Rs 7.35 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.

Promoters' stake was 62.43% as of 31 March 2025 ,compared to 62.43% as of 31 March 2024 .

ISGEC Heavy Engineering : Consolidated Results

	Quarter ended			Year ended
Particulars	202503	202403	Var.(%)	202503	202403	Var.(%)
Net Sales (including other operating income)	1,744.40	1,867.96	-6.61	6,422.28	6,219.34	3.26
OPM (%)	8.72	7.37	135 bps	9.02	8.01	101 bps
OP	152.05	137.60	10.50	579.40	498.06	16.33
Other Inc.	2.63	4.01	-34.41	39.34	25.90	51.89
PBIDT	154.68	141.61	9.23	618.74	523.96	18.09
Interest	13.39	11.01	21.62	39.30	63.68	-38.29
PBDT	141.29	130.60	8.19	579.44	460.28	25.89
Depreciation	11.57	28.2	-58.97	102.03	106.24	-3.96
PBT	129.72	102.40	26.68	477.41	354.04	34.85
Share of Profit/(Loss) from Associates	0	0.02	-	0	0.12	-
PBT before EO	129.72	102.42	26.65	477.41	354.16	34.80
EO Income	0	0	-	0	0	-
PBT after EO	129.72	102.42	26.65	477.41	354.16	34.80
Taxation	31.66	30.36	4.28	121.71	99.29	22.58
PAT	98.06	72.06	36.08	355.7	254.87	39.56
Minority Interest (MI)	6.85	0.76	801.32	14.73	11.2	31.52
Net profit	91.21	71.3	27.92	340.97	243.67	39.93
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	91.21	71.3	27.92	340.97	243.67	39.93
EPS (Rs)*	12.40	9.70	27.92	46.37	33.14	39.93

* EPS is on current equity of Rs 7.35 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

ISGEC Heavy Engineering : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202503	202403	Var.(%)	% of (Total)	202503	202403	Var.(%)
Sales
Mfg of Machinery & Equipment	35.06	667.24	741.30	-9.99	36.39	2,500.34	2,263.08	10.48
Engineering Procurement & Construct	51.63	982.68	1,038.94	-5.42	50.75	3,487.41	3,459.96	0.79
Sugar	9.79	186.26	246.72	-24.51	9.85	677.04	769.25	-11.99
Plant Under Construction	0.00	0.00	0.77	-
Ethanol	3.52	67.01	46.95	42.73	3.01	207.00	207.79	-0.38
Total Reported Sales	100.00	1,903.19	2,074.68	-8.27	100.00	6,871.79	6,701.11	2.55
Less: Inter segment revenues		158.79	203.36	-21.92		449.51	482.09	-6.76
Net Sales	100.00	1,744.40	1,871.32	-6.78	100.00	6,422.28	6,219.02	3.27
PBIT
Mfg of Machinery & Equipment	50.00	69.13	73.12	-5.46	55.09	292.22	230.69	26.67
Engineering Procurement & Construct	33.07	45.73	40.57	12.72	30.28	160.61	134.16	19.72
Sugar	11.24	15.54	10.23	51.91	11.03	58.53	72.65	-19.44
Plant Under Construction	0.00	0.00	5.55	-
Ethanol	5.69	7.87	-9.83	LP	3.60	19.08	23.96	-20.37
Total PBIT	100.00	138.27	119.64	15.57	100.00	530.44	433.49	22.36
Less : Interest		19.35	9.15	111.48		55.08	59.18	-6.93
Add: Other un-allcoable		10.80	-8.07	LP		2.05	-20.15	LP
PBIT Margin(%)
Mfg of Machinery & Equipment		10.36	9.86	49.68		11.69	10.19	149.36
Engineering Procurement & Construct		4.65	3.90	74.87		4.61	3.88	72.79
Sugar		8.34	4.15	419.68		8.64	9.44	-79.93
Plant Under Construction		0.00	720.78	-72,077.92		0.00	-2,715.53	271,553.40
Ethanol		11.74	-20.94	3,268.17		9.22	11.53	-231.35
PBT	100.00	129.72	102.42	26.65	100.00	477.41	354.16	34.80