Isgec Heavy Engineering Limited — PPTs, 16-06-2025: Investor Presentation

1. Financial Highlights:

Isgec Heavy Engineering Ltd reported consolidated revenue of Rs 6,462 Cr in FY25, up 3.5% YoY. EBITDA rose 14.7% YoY to Rs 618.7 Cr, with margins expanding to 9.6%. PAT jumped 26.8% YoY to Rs 356 Cr, pushing PAT margin to 5.5%. Machinery & equipment manufacturing drove segment growth at 8.5%, while industrial projects edged up 0.8%. The Sugar & Ethanol segment declined 9.5% YoY (excluding the Philippines ethanol plant). The order book stood strong at Rs 8,077 Cr, balanced between domestic and international clients.

2. Strategic Initiatives & Growth Drivers:

Expansion in ethanol capacity and a shift towards cleaner fuels like RLNG highlight Isgec’s sustainability focus. The company is upgrading manufacturing capabilities via JVs with global firms such as Hitachi Zosen and Sumitomo SHI FW. Initiatives in circular economy practices—including scrap recycling, wastewater treatment, and renewable energy—aim to boost operational efficiency over time.

3. Business Developments:

Isgec is divesting its stake in Bioeq Energy Holdings (Philippines), including the Cavite Biofuels ethanol plant, reflecting portfolio streamlining. The plant, commissioned in late 2024, has been classified as discontinued operations due to this sale. Several operational JVs continue to focus on niche high-tech manufacturing and emission control solutions.

4. Market Position & Competitive Advantage:

With a 90+ year legacy and a presence in 93 countries, Isgec leverages a broad, diversified product range and strong global technology partnerships. This diversity supports resilience against industry cyclicality. Its strong credit ratings (AA Stable, A1+ ICRA) underpin financial strength.

5. Investor Implications:

Margin expansion, strong earnings growth, and a diversified order book indicate positive growth potential. Strategic divestments and sustainability efforts could enhance focus and cost efficiency. Investors should monitor execution risks around project delivery and technology integration, along with global industrial demand trends.