Isgec Heavy Engineering Ltd. · NSE:ISGEC
Isgec Heavy Engineering — Q4 FY2023 Earnings Presentation
34 slides from Isgec Heavy Engineering's earnings presentation, May 30, 2023
Slide 1: Stock exchange intimation letter
= ISGEC HEAVY ENGINEERING LTD. A-4, Sector-24, Naida - 201 301 (UP) India (GST No.: 09AAACT5540K2Z4) Tel.: +91-120-4085000/01 /02 Fax: +91-120-4085100 www.isgec.com c�@l��ec - c..o,l'I'\ Date: May 30, 2023 H0-425-S To, To, BSE Limited National Stock Exchange of India Limited Registered Office: Floor
Slide 2: ISGEC Heavy Engineering Ltd Investor Presentation Q4 & FY2023
ISGEC Heavy Engineering Ltd Investor Presentation Q4 & 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) 90 years of providing engineering 4500+ Employees across Businesses solutions to customers globally locations in India, Canada, USA Wide Spectrum of User
Slide 7: 90 years of Isgec
90 years of Isgec Incorporated in 1933 as a Sugar Manufacturing Company. Transformed into a Diversified Heavy Engineering Company with 84% Consolidated Revenues coming from Engineering Products and Projects 1933-2010 2011-2023 Company (erstwhile Saraswati 1933 Sugar Syndicate Ltd) was 1973 Company a
Slide 8: Manufacturing Facilities
Manufacturing Facilities Yamunanagar, (Haryana) Muzaffarnagar, Isgec Hitachi Pressure Vessels & (U.P.) Zosen Ltd., Dahej, Heat Exchangers, Steel Castings (Gujarat) Presses, Containers, Pressure Vessels, Castings, Sugar and Columns, Heat 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: B.Sc. Industrial Management from MIT, USA. Education: Education: Education
Slide 10: Independent Directors
Mr. Vishal Kirti Keshav Mr. Sidharth Prasad Mr. Arvind Sagar Mrs. Rashi Sikka Marwaha Independent Director Independent Director Independent Director Independent Director Education: : Education: Education: Education: : C.A and B.Com (Honours) from the B.Com from Lucknow University, and an B.Tech. in
Slide 11: Investment Rationale
(Pann cannon Sen ESRC SNS S SESS SSS SESSA S SSS SABES ESAS ESS SOOO y) Investment Rationale
Slide 12: Investment Rationale
Investment Rationale Diversification to Strong Credibility its Core among Clients Rich Technology Robust Order Capabilities Book 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 34% 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. 83,210 Mn * Composition by Industry 28% 21% 14% 13% 12% 2% 10% Refineries Power Steel, Sugar Chemicals, Railways Others Ceme
Slide 15: Diversification across Geographies
Diversification across Geographies Presence in 91 countries across 6 continents Revenue 100% 10% 18% 17% 23% 22% 90% 80% 70% 60% 50% 90% 82% 83% 77% 78% 40% 30% 20% 10% 0% FY19 FY20 FY21 FY22 FY23 Domestic International International Sales contributed ~17% of Revenue in FY23 and ~10% of the Total Or
Slide 16: Building Strength with JVs & Acquisitions
Building Strength with JVs & Acquisitions 100% 90% 51% Isgec Hitachi Zosen Ltd., Saraswati Sugar Mills Ltd., India India With cane crushing capacity of ~ 10000 TCD, having highest sugar JV with Hitachi Zosen Corp., Japan recovery in Punjab and Haryana for the to manufacture specialized & past 10 yea
Slide 17: Investment Rationale
Investment Rationale Diversification to Strong Credibility its Core among Clients Rich Technology Robust Order Capabilities Book 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 Critical Process Boilers Sumitomo SHI FW Equipment 1985 Energia, Oy) 2006 2010 CFB Boilers 1964 1998 2009 Foster Wheeler North ABB Lummus America Heat Transfer Corporation (Now Rovetta Presse, Italy BHI FW M
Slide 19: 2. Technology Infusion over the Years (2/2)
2. Technology Infusion over the Years (contd.)(2/2) Babcock Power USA BHI FW Envirotherm, Wet FGDs Corporation 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 Strong Credibility its Core among Clients Rich Technology Robust Order Capabilities Book 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 Strong Credibility its Core among Clients Rich Technology Robust Order Capabilities Book 23
Slide 25: Robust Order Book (Consolidated)
Robust Order Book (Consolidated) (in Rs. Mn as at end of Financial Year) 90,000 83,210 80,000 73,220 70,000 69,350 67,650 60,000 50,000 40,000 30,000 20,000 10,000 0 FY20 FY21 FY22 FY23 24
Slide 26: Order Book Composition (Consolidated)
Order Book Composition (Consolidated) Sector wise Geography wise Segment wise 10% 21% 46% 54% 79% 90% PSU & Government Private Projects Manufacturing International Domestic Order Book Rs. 83,210 Mn (as on 31.03.2023) 25
Slide 27: Financial Highlights
Financial Highlights
Slide 28: Financial Highlights – Quarterly
Financial Highlights – Quarterly (in Rs. Mn) Revenue EBITDA YOY 44% PAT YOY 79% 2,055 YOY 16% 64,117 4,673 55,126 3,246 YOY 138% 1,150 YOY 58% 932 YOY 24% 20,484 1,700 15,973 1,076 392 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 EBITDA Margin EBIT Margin PAT Margin 8.3% 4
Slide 29: Financial Highlights – Annual
Financial Highlights – Annual (in Rs. Mn) Revenue EBITDA PAT 64,117 5,067 2,531 4,673 2,055 59,142 3,567 54,773 55,126 3,246 1,491 1,150 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA Margin EBIT Margin PAT Margin 10. 0% 9.3% 7.4% 4.6% 8.0% 9.0% 7.3% 7.0% 5.7% 8.0% 6.0% 6.0% 5.9%
Slide 30: Financial Highlights – Segmental
Financial Highlights – Segmental Manufacturing EBIT Margin EPC EBIT Margin Sugar & Ethanol EBIT Margin 14.1% 9.2% 9.2% 7.7% 8.1% 6.9% 6.9% 4.1% 3.8% 4.4% 4.3% 2.9% Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Manufacturing EBIT Margin EPC EBIT Margin Sugar & Ethanol EBIT M
Slide 31: Highlights of new orders booked
Highlights of new orders booked Order for Oil & Gas Orders for Boilers 1 Fired Boilers from a from major Steel 4 leading companies Refinery company Wet Electrostatic Sulphuric Acid Precipitator (ESP) 2 Project from a major order from a 5 Fertilizer company major Indian conglomerate Order for Expansi
Slide 32: Annexures
Annexures
Slide 33: Shareholder Information
Shareholder Information Shareholding structure – 31st March 2023 Shareholder Information as on 31st March 2023 BSE Ticker 533033 27.3% NSE Symbol ISGEC Market Cap (in Rs. Mn) 32,004 % Free- float 37.6% 0.5% 62.4% Free Float Market Cap (in Rs. Mn) 12,024 2.5% Shares Outstanding (Mn) 73.5 7.3% 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 Riddhant Kapur rohit.anand4@in.ey.com I riddhant.kapur@in.ey.com
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