Isgec Heavy Engineering Ltd. · NSE:ISGEC
Isgec Heavy Engineering — Q3 FY2023 Earnings Presentation
34 slides from Isgec Heavy Engineering's earnings presentation, Feb 14, 2023
Slide 1: Exchange filing cover letter
= � I GE ISGEC HEAVY ENGINEER ING LTD. A-4, Sector-24 Naida - 201 301 (U.P) lndi� (GST No.: 09AAACT5540K2Z4) Tel.: +91-120-4085000/01 /02 Fax: +91-120-4085100 ,, www.isgec.com 6 1 -Mal : cs@f�a� .ll!). 'I/\. Date: February 14, 2023 H0-425-S To, To, BSE Limited National Stock Exchange of India Limite
Slide 2: ISGEC Heavy Engineering Ltd Investor Presentation Q3 FY2023
ISGEC Heavy Engineering Ltd Investor Presentation Q3 FY2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Isgec Heavy Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Contents
Company Overview Investment Rationale Contents Financial Highlights Annexures
Slide 5: Company Overview
Company Overview
Slide 6: Isgec at a glance
Isgec at a glance Diversified Heavy Engineering Highly Experienced Management Strong Human Capital Company Mix of Manufacturing and Project (EPC) 89 years of providing engineering 4000+ Employees across Businesses solutions to customers globally locations in India, Canada, USA Wide Spectrum of User
Slide 7: 89 years of Isgec
89 years of Isgec Incorporated in 1933 as a Sugar Manufacturing Company. Transformed into a Diversified Heavy Engineering Company with 87% Consolidated Revenues coming from Engineering Products and Projects 1933-2010 2011-2022 Company (erstwhile Saraswati Company acquires a Castings Unit. JV with Hi
Slide 8: Manufacturing Facilities
Manufacturing Facilities Yamunanagar, (Haryana) Muzaffarnagar, (U.P.) Isgec Hitachi Zosen Pressure Vessels & Heat Steel Castings Ltd., Dahej, (Gujarat) Exchangers, Presses, Pressure Vessels, Containers, Castings, Columns, Heat Sugar and other Industrial Exchangers, Reactors Machinery Rattangarh, EPC
Slide 9: Experienced Board
Experienced Board Mr. Ranjit Puri Mr. Aditya Puri Mr. Kishore Chatnani Mr. Sanjay Gulati Chairman Managing Director Whole-time Director and Whole-time Director and Chief Financial Officer Head – Manufacturing Units Education: Education: Education: Education: B.Sc. Industrial Management from MIT, USA
Slide 10: Independent Directors
Mr. Vishal Kirti Keshav Marwaha Mr. Sidharth Prasad Mr. Arvind Sagar Mrs. Rashi Sikka Independent Director Independent Director Independent Director Independent Director Education: : Education: Education: Education: : C.A and B.Com (Honours) from the University of B.Com from Lucknow University, and
Slide 11: Investment Rationale
Investment Rationale
Slide 12: Investment Rationale
Investment Rationale Diversification to its Strong Credibility Core among Clients Rich Technology Robust Order Book Capabilities 11
Slide 13: 1. Diversified Business Model
1. Diversified Business Model Isgec is a significant global player across business areas in Manufacturing and EPC Manufacturing EPC Process Equipment Sugar Plants & Distilleries Iron & Steel Castings Air Pollution Control Equipment & Projects 50% Boiler Tubes & Panels Industrial Boilers Presses Powe
Slide 14: Diversified across Sectors
Diversified across Sectors Railways Power Fertilizer Cement Mines Ports Oil & Gas Steel Water Chemical Space Automobile Defence Sugar Distillery Paper Treatment Order Book Rs. 77,520 mn * Composition by Industry 23% 15% 2% 26% 11% 12% 11% Power Sugar Railways Refineries Chemicals, Steel, Others Petr
Slide 15: Diversification across Geographies
Diversification across Geographies Presence in 91 countries across 6 continents 100% 10% 18% 23% 23% 90% 25% 80% 70% 60% 50% 90% 82% 77% 77% 40% 75% 30% 20% 10% 0% FY18 FY19 FY20 FY21 FY22 Domestic Export Exports contributed 10% of revenue in FY22, and ~11% of the total orderbook Exports are expecte
Slide 16: Building Strength with JVs & Acquisitions
Building Strength with JVs & Acquisitions 100% 90% 51% Saraswati Sugar Mills Ltd. Isgec Hitachi Zosen Ltd. With cane crushing capacity of ~ 10000 TCD, JV with Hitachi Zosen Corp., Japan having highest sugar recovery in Punjab and to manufacture specialized & critical Haryana for the past 10 years, R
Slide 17: Investment Rationale
Investment Rationale Diversification to its Strong Credibility Core among Clients Rich Technology Robust Order Book Capabilities 16
Slide 18: 2. Technology Infusion over the Years (1/2)
2. Technology Infusion over the Years (1/2) John Thompson, Foster Wheeler, HITZ UK USA, (Now Sumitomo SHI Critical Process Boilers FW Energia, Oy) Equipment 1985 CFB Boilers 2006 2010 1964 1998 2009 Foster Wheeler North America Corporation ABB Lummus (Now Heat Transfer BHI FW Corporation, Rovetta Pr
Slide 19: 2. Technology Infusion over the Years (2/2)
2. Technology Infusion over the Years (contd.)(2/2) Babcock Power USA BHI FW Corporation Envirotherm, Wet FGDs USA, Germany Combustion ESPs modification 2016 Riley Power USA 2020 of Tangentially Process Fired Fired Heaters Boilers AP&T 2012 Hot Stamping presses 2017 2021 Fuel Tech, USA NOx solutions
Slide 20: Standing Strong with Global Quality Benchmarks
Standing Strong with Global Quality Benchmarks Conformitè Europëenne Environment Management System-Approved by DNV GL Business Assurance Europëenne 'S' 'U' 'U-2' & 'U-3' Stamps Quality Requirements for fusion welding of metallic materials – Approved by Lloyd’s Register Quality Management System–Appr
Slide 21: Investment Rationale
Investment Rationale Diversification to its Strong Credibility Core among Clients Rich Technology Robust Order Book Capabilities 20
Slide 22: 3. Positioned at No.1 / No. 2 in most Business Lines
3. Positioned at No.1 / No. 2 in most Business Lines Reactors and Critical Equipment for Refinery, Hydraulic & Mechanical Presses Petrochemical and Fertilizer Sectors Sugar Plants Oil & Gas Boilers Circulating Fluidized Bed Boiler Bubbling Bed Boilers Traveling Grate Boilers Made-to-order large Stee
Slide 23: Serving Marquee Clientele
Serving Marquee Clientele 22
Slide 24: Investment Rationale
Investment Rationale Diversification to its Strong Credibility Core among Clients Rich Technology Robust Order Book Capabilities 23
Slide 25: Robust Order Book
Robust Order Book (in Rs. Million) 80,0 00 78,0 00 77,520 76,0 00 74,0 00 73,220 72,0 00 70,0 00 69,350 68,0 00 67,650 66,0 00 64,0 00 62,0 00 FY20 FY21 FY22 31.12.22 24
Slide 26: Order Book Composition (Consolidated)
Order Book Composition (Consolidated) Sector wise Geography wise Segment wise 11% 26% 40% 60% 74% 89% PSU & Government Private Projects Manufacturing Export Domestic Order Book Rs.77,520 mn (as on 31.12.2022) 25
Slide 27: Financial Highlights
Financial Highlights
Slide 28: Financial Highlights – Quarterly (in Rs. mn)
Financial Highlights – Quarterly (in Rs. mn) Revenue YOY11% PAT 43,633 EBITDA YOY37% YOY48% 39,153 2,972 1124 YOY27% YOY14% YOY13% 2,170 758 659 15,980 1,287 520 14,026 1,141 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 EBITDA Margin EBIT Margin PAT Margin 9.0%
Slide 29: Financial Highlights – Annual (in Rs. mn)
Financial Highlights – Annual (in Rs. mn) Revenue EBITDA PAT 59,142 5,067 2,531 54,773 55,126 3,350 3,567 3,246 1,440 1,491 51,194 1,150 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 EBITDA Margin EBIT Margin PAT Margin 9.3% 8.0% 7.4% 4.6% 10.0 % 9.0% 7.0% 8.0% 6.5% 6.0% 7.0% 6.0% 5.9%
Slide 30: Financial Highlights – Segmental
Financial Highlights – Segmental Manufacturing EBIT Margin EPC EBIT Margin Sugar EBIT Margin 12.8% 11.4% 8.7% 7.5% 8.1% 6.5% 6.3% 5.1% 4.6% 4.2% 4.4% 2.4% Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 Manufacturing EBIT Margin EPC EBIT Margin Sugar EBIT Margin 1
Slide 31: Highlights of new orders booked
Highlights of new orders booked Order for Circulating Fluidised Bed Co-gen Power Plant Combustion (CFBC) Travelling Grate 1 Boiler from a leading Boiler from a major 4 chemical company sugar company Order for syrup-based Order for syrup- ethanol plant and based ethanol plant multifeed ethanol / from
Slide 32: Annexures
Annexures
Slide 33: Shareholder Information
Shareholder Information Shareholding structure – 31st December 2022 Shareholder Information as on 31st December 2022 BSE Ticker 533033 27.7% NSE Symbol ISGEC Market Cap (INR Mn) 35,459 % Free- float 37.6% 0.3% 62.4% Free Float Market Cap (INR Mn) 13,257 2.8% Shares Outstanding (Mn) 73.5 6.8% 3M ADTV
Slide 34: THANK YOU
THANK YOU Isgec Heavy Engineering Limited, INDIA chatnani@Isgec.com | www.isgec.com Registered Office Radaur Road, Yamunanagar - 135001, Haryana, India CIN No.: L23423HR1933PLC000097 Ernst & Young LLP Rohit Anand I Nikita Atri rohit.anand4@in.ey.com I nikita.atri@in.ey.com
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