Highlights
- Sales over the Year and quarter: The company’s sales declined by -8.56 % over the year, substantial increase in net sales/revenue by 25.15 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -28.92 %, Marginal decrease of -24.53% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for ISGEC Heavy Engineering Limited. Profit dropped by -22.65 % Year to Year, ISGEC Heavy Engineering Limited’s profitability increased by 8.23 % in this quarter.
- EPS over the Year and quarter: EPS declined by -17.16 % Year to Year. EPS increased by 15.2 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2042.74 Cr | Rs. 1492.52 Cr | Rs. 1867.96 Cr | + 25.15 % | -8.56 % |
| Expenses | Rs. 1878.35 Cr | Rs. 1369.18 Cr | Rs. 1730.36 Cr | + 26.38 % | -7.88 % |
| Operating Profit | Rs. 164.39 Cr | Rs. 123.34 Cr | Rs. 137.6 Cr | + 11.56 % | -16.3 % |
| OPM % | 8.05 % | 8.26 % | 7.37 % | -0.89 % | -0.68 % |
| Other Income | Rs. 5.67 Cr | Rs. 5.34 Cr | Rs. 4.03 Cr | -24.53 % | -28.92 % |
| Interest | Rs. 17.49 Cr | Rs. 12.96 Cr | Rs. 11.01 Cr | -15.05 % | -37.05 % |
| Depreciation | Rs. 26.77 Cr | Rs. 27.04 Cr | Rs. 28.2 Cr | + 4.29 % | + 5.34 % |
| Profit before tax | Rs. 125.8 Cr | Rs. 88.68 Cr | Rs. 102.42 Cr | + 15.49 % | -18.59 % |
| Tax % | 25.95 % | 24.94 % | 29.65 % | + 4.71 % | + 3.7 % |
| Net Profit | Rs. 93.16 Cr | Rs. 66.58 Cr | Rs. 72.06 Cr | + 8.23 % | -22.65 % |
| EPS in Rs | Rs. 11.71 | Rs. 8.42 | Rs. 9.7 | + 15.2 % | -17.16 % |
Today, we’re looking at ISGEC Heavy Engineering Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -8.56 %. However, it did see a marginal increase of 25.15 % from the previous quarter. Expenses ticked up slightly by 26.38 % quarter-on-quarter, aligning with the annual decline of -7.88 %. Operating profit, while down -16.3 % compared to last year, faced a quarter-on-quarter increase of 11.56 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.68 %, but a shrinkage of -0.89 % sequentially. Other income fell by -24.53 % compared to the last quarter, despite an annual decline of -28.92 %. Interest expenses dropped significantly by -15.05 % from the previous quarter, yet the year-over-year decrease remains at a moderate -37.05 %. Depreciation costs climbed by 4.29 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 5.34 %. Profit before tax declined annually by -18.59 % but saw an increase from the preceding quarter by 15.49 %.
Tax expenses as a percentage of profits increased slightly by 3.7 % compared to last year, with a more notable quarter-on-quarter increase of 4.71 %. Net profit fell by -22.65 % year-on-year but experienced a 8.23 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -17.16 % but a quarterly rise of 15.2 %. In summary, ISGEC Heavy Engineering Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2042.74 Cr | Rs. 1492.52 Cr | Rs. 1867.96 Cr | + 25.15 % | -8.56 % |
| Expenses | Rs. 1878.35 Cr | Rs. 1369.18 Cr | Rs. 1730.36 Cr | + 26.38 % | -7.88 % |
| Operating Profit | Rs. 164.39 Cr | Rs. 123.34 Cr | Rs. 137.6 Cr | + 11.56 % | -16.3 % |
| Net Profit | Rs. 93.16 Cr | Rs. 66.58 Cr | Rs. 72.06 Cr | + 8.23 % | -22.65 % |
| EPS in Rs | Rs. 11.71 | Rs. 8.42 | Rs. 9.7 | + 15.2 % | -17.16 % |
In reviewing ISGEC Heavy Engineering Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -8.56 % year-on-year, however, there was a minor increase of 25.15 % from the previous quarter. Expenses decreased by -7.88 % compared to the previous year, with a 26.38 % increase quarter-on-quarter. Operating Profit dropped by -16.3 % annually, and saw a 11.56 % increase from the last quarter.
Net Profit showed yearly decrease of -22.65 %, and experienced a 8.23 % increase from the previous quarter. Earnings Per Share (EPS) fell by -17.16 % annually, however rose by 15.2 % compared to the last quarter. In essence, while ISGEC Heavy Engineering Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
