Isgec Heavy Engineering Ltd. · NSE:ISGEC
Isgec Heavy Engineering — Q2 FY2023 Earnings Presentation
35 slides from Isgec Heavy Engineering's earnings presentation, Nov 11, 2022
Slide 1: Letter to BSE and NSE on investor presentation
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.1sgec com t�I :. c{o@P�e_c .,ccY11 H0-425-S Date: 11-11-2022 To, To, BSE Ltd. National Stock Exchange of India Limited Registered Office: Floor 25,
Slide 2: Investor Presentation Q2 FY2023
ISGEC Heavy Engineering Ltd Investor Presentation Q2 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 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: Education: Education: Education: B.Sc. Industrial Management from MIT, USA
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: 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 58% 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 Composition by Industry 26% 12% 3% 27% 7% 14% 11% Power Sugar Railways Refineries Chemicals, Steel, Others Petrochemicals Cement & & Fertil
Slide 15: Presence in 91 countries across 6 continents
Diversification across Geographies Presence in 91 countries across 6 continents Global India 90% 82% 10% 77% 77% 18% 23% 23% 75% FY18 25% FY19 FY20 FY21 FY22 Exports contributed 10% of revenue in FY22, and ~11% of the total orderbook Exports are expected to pick up as travel has opened up after COVI
Slide 16: Building Strength with JVs & Acquisitions
Building Strength with JVs & Acquisitions Isgec Hitachi Zosen Ltd. JV with Hitachi Zosen Corp., Japan Saraswati Sugar Mills Ltd. to manufacture specialized & critical Process Equipment With cane crushing capacity of ~ 10000 TCD, having highest sugar recovery in Punjab and Haryana for the 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: Technology Infusion over the Years
2. Technology Infusion over the Years 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 Mechani
Slide 19: Technology Tie-ups (continued)
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 Sumitomo SHI FW Energia OY, Finland SIEMENS Heat Tr
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: 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
Robust Order Book (in Rs. Million) 80,000 78,000 77,620 76,000 74,000 73,220 72,000 70,000 69,350 68,000 67,650 66,000 64,000 62,000 FY20 FY21 FY22 30.09.22 24
Slide 26: Order Book Composition (Consolidated)
Order Book Composition (Consolidated) Sector wise Geography wise Segment wise 11% 23% 43% 57% 77% 89% PSU & Government Private Projects Manufacturing Export Domestic Order Book Rs.77,620 mn (as on 30.09.2022) 25
Slide 27: Financial Highlights
Financial Highlights
Slide 28: Financial Highlights – Quarterly
Financial Highlights – Quarterly Revenue EBITDA PAT YOY10% YOY10% YOY88% YOY64% YOY182% YOY95% 27,654 1,686 25,127 465 13,792 15,151 933 1,029 285 238 495 101 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 EBITDA Margin EBIT Margin PAT Margin 6.2% 1.9% 6.1% 4.4%
Slide 29: Financial Highlights – Annual
Financial Highlights – Annual 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% 7.4% 4.6% 10. 0% 8.0% 9.0% 7.0% 8.0% 6.5% 6.0% 7.0% 6.0% 5.9% 4.9% 6.0% 5
Slide 30: Financial Highlights – Segmental
Financial Highlights – Segmental Manufacturing EBIT Margin EPC EBIT Margin Sugar EBIT Margin 4.7% 8.6% 13.5% 4.0% 7.0% 10.5% 9.0% 9.4% 5.3% 5.2% 1.5% 1.5% Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Manufacturing EBIT Margin EPC EBIT Margin Sugar EBIT Margin 1
Slide 31: Financial Performance Trend
Financial Performance Trend Total Debt/ Equity Interest Coverage Ratio 0.5 0.5 0.5 0.5 9.9 8.1 6.2 0.2 3.4 3.1 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 Total Debt includes all interest bearing liabilities Interest coverage ratio= EBIT/Interest Fixed Asset Turnover ratio 7.5 7.6 6.8 6.3
Slide 32: Highlights of new orders booked
Highlights of new orders booked 2 Wet Flue Gas Cement Waste Desulphurisation heat recovery 1 boilers from some 4 System for leading power company of the major cement companies Order for Gas Boilers from a Reactor Purge Bin 2 leading gas for a gas 5 company company Order for Dry Ethanol Plant for a S
Slide 33: Annexures
Annexures
Slide 34: Shareholder Information
Shareholder Information Shareholding structure – 30th September 2022 Shareholder Information as on 30th September 2022 BSE Ticker 533033 28.0% NSE Symbol ISGEC Market Cap (INR Mn) 37,206 % Free- float 38% 62.4% Free Float Market Cap (INR Mn) 13,978 0.3% 2.4% Shares Outstanding (Mn) 73.5 6.8% 3M ADTV
Slide 35: 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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