Uploaded on BSE Limited Website: http://listing.bseindia.com ho-425-S February 12, 2021
The Manager-Department of Corporate Services Bombay Stock Exchange Ltd Registered Office, Floor 25 P J Towers, Dalal Street Mumbai 400 001.
Dear Sir/Madam,
Furnishing of Information as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Scrip Code: 533033, Scrip Id: ISGEC
Sub: Investor Presentation on the Unaudited Financial Results for the Quarter ended December 31, 2020.
1. This is further to our letter bearing Ref. No. Ho-425 dated 08 February, 2021, wherein we had given an advance intimation of the upcoming Investor Conference Call organized by the Company on February 12, 2021 at 16:00 hours (IST) to discuss the financial performance of the quarter ended December 31, 2020.
2. In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith a copy of the Investor Presentation of the Company on the Unaudited Financial Results for the quarter ended December 31, 2020.
3. The Investor Presentation is also available on the website of the Company www.isgec.com
4. The above is for your information and records, please.
Thanking you,
Yours faithfully, For Isgec Heavy Engineering Limited
S.K. Khorana Executive Director & Company Secretary Contact Number: +91 9810188045
Encl: as above
Investor Presentation 12th February 2021
03 February 2020 1 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 any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
03 February 2020 Investor Presentation2 2 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor Presentation3 3 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor Presentation4 4 ISGEC at a glance
A Diversified Heavy Engineering Company engaged in Manufacturing and Project Businesses. Manufacturing of Presses, Castings and Process Equipment. Turnkey Projects for setting up Boilers, FGD’s, Sugar Plants, Distilleries, Power Plants, Bulk Material Handling facilities, Railways and Factory Buildings, Water treatment plants and Civil Infrastructure.
9M FY21
Total Revenue EBITDA Net Worth EPS ₹ 38,499 mn ₹ 3,755 mn ₹ 20,461 mn ₹ 25.1
Q3 FY21
Total Revenue EBITDA PAT Order Book* ₹ 14,234 mn ₹ 1,316 mn ₹ 649 mn ₹ 68,630 mn
Figures as per consolidated financials * Order Book as on 31st December 2020
03 February 2020 Investor Presentation5 5 ISGEC at a glance
Diversified Heavy Engineering Company Robust Balance Sheet Mix of Manufacturing and Project Businesses Net Worth of INR 20,461 Mn (31 Dec 2020) Mix of Domestic & Export Revenues Strong Credit Rating - ICRA Credit Rating of AA (Stable) Wide Spectrum of User Industries and A1+
Strong Human Capital 4,000+ Employees across locations in India, Canada, Highly Experienced Management USA and Philippines 88 years of providing engineering solutions to customers 900+ qualified engineers globally.
Trusted Partner Global reach Technology tie-ups and JVs with leading global Presence across 91 countries across All continents Companies
03 February 2020 Investor Presentation6 6 Our Journey
What started off in 1933 as a Sugar Manufacturing Company has been transformed into a Diversified Heavy Engineering Company with 90% of our Consolidated Revenues coming from Engineering Products and Projects
1933-1990 1991-2010 2011-2015 2016-2020
Company (erstwhile named as Design office starts at Chennai. JV with Hitachi Zosen Company acquired 100% stake in 1933 Saraswati Sugar Syndicate Ltd) was 2007 2012 Corporation, Japan for 2018 Eagle Press & Equipment Co. Ltd., Company turnover crosses Established. manufacturing specialized and a Press manufacturing company INR 10,000 mn. critical process equipment in Canada. Indian Sugar & General Engineering (51% share with Isgec). Company Company is listed in Group B of the 1946 Corporation (Isgec Heavy Engineering turnover crosses Company turnover crosses 2008 Bombay Stock Exchange. Limited) established to address the INR 30,000 mn. 2020 INR 58,000 mn. need for Indian Capital Goods New plant at Dahej, Gujarat set up Industry. to manufacture heavier and bigger process plant equipment for the JVs with Sumitomo SHI FW The Saraswati Sugar amalgamated overseas market. 2015 Energia, Oy , USA; TITAN Metal 1963 with Isgec. Fabricators, USA and Redecam, New factory for Standard Presses is Italy . Isgec John Thompson Ltd. (IJT) 2009 set up at Bawal, near Gurgaon 1965 is formed for designing, (Haryana) India. Company supplying, erecting and Turnover crosses INR 20,000 mn. providing after sales service of boilers. 2010 Design office starts at Pune. 1967 Presses Division formed. Isgec John Thompson Ltd (IJT) 1973 amalgamated with Isgec.
Company acquires a Castings 1981 Unit.
03 February 2020 Investor Presentation7 7 Global Footprint - Presence across 91 countries Sales from outside India contributed ~17% of Total Revenue in FY21
India 69% 69% 75% 77% 77% 83% Global 31% 31% 25% 23% 23% 17% FY16 FY17 FY18 FY19 FY20 9M FY21
03 February 2020 Investor Presentation8 8 Shareholder Information
Shareholding structure – 31st December 2020
Shareholder Information as on 31st December 2020
Promoter BSE Ticker 533033
Market Cap (INR Mn) 24,261 28.4% Mutual Funds % Free- float 38% Free Float Market Cap (INR Mn) 9,219
1.4% Shares Outstanding (Mn) 73.5 62.4% FIIs 7.9% 3M ADTV (Shares) 98,289
3M ADTV (INR Mn) 28.1
Others Industry Industrial Machinery
Promoter shares are unencumbered
03 February 2020 Investor Presentation9 9 Our Team
Board of Directors Our Team
Mr. Ranjit Puri Non-Executive Chairman & Promoter Mr. S.K. Khorana Executive Director & Company Secretary
Mr. Aditya Puri Managing Director & Promoter Mr. Kishore Chatnani Chief Financial Officer
Mrs. Nina Puri Whole-time Director & Promoter Mr. Sanjay Gulati Chief Executive Officer, ISGEC- Yamunanagar
3 Non-Executive Independent Directors Mr. Vivek Nigam Business Head Machine Building Division EPC Division (Power Plants, Material Mr. Sidharth Prasad Mr. PVN Sanjay Business Head Handling, Factories Construction) Mr. Vishal Kirti Keshav Marwaha Mr. V K Luthra Business Head Boiler Division Mrs. Shivani Hazari Mr. Suman Jain Business Head FGD and Air Pollution Control
Sugar Machinery and Distilleries Mr. Sanjay Awasthi Business Head Division
Mr. Sanjay Choudhary Business Head Process Equipment Division
Mr. K Vishwanathan Head Engineering Service Centre
Mr. Yogesh Marwaha Head International Marketing
Mr. Shalabh Singh Head Corporate Business Development
Mr. Lazar Pilli Head Corporate Human Resources
03 February 2020 Investor10 Presentation 10 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor11 Presentation 11 State-of-the-art Infra & Manufacturing Capabilities
Corporate Office Yamunanagar, Haryana • Noida, UP Pressure Vessels & Heat exchangers, Presses, Boilers, Containers, Castings, Sugar and other Industrial Machinery
Rattangarh, Haryana Boiler Components, Headers, Reactors, Piping Bawal, Haryana Mechanical Presses and other Industrial Overseas facility Machinery
Dahej, Gujarat Pressure Vessels, Columns, Heat Exchangers, Reactors
EPC Offices Muzaffarnagar, UP • Noida, UP Steel Castings Eagle Press & Equipment Co. Ltd. • Chennai, Tamil Nadu Windsor, Canada • Pune, Maharashtra Presses
03 February 2020 Investor12 Presentation 12 Building Strength with Acquisitions and JVs
Saraswati Sugar Mills Ltd. Eagle Press & Equipment Co. Ltd. With cane crushing capacity of ~ 10000 Press manufacturing company in TCD, having highest sugar recovery in 100% Windsor (Ontario) Canada Punjab and Haryana for the past 10 years
51%
ISGEC Hitachi Zosen Ltd. ISGEC Titan Metal Fabricators Pvt. Ltd. ISGEC SFW Boilers Pvt. Ltd. ISGEC Redecam Enviro Solutions Pvt. Ltd. JV with Hitachi Zosen Corp., JV with Titan Metal Fabricators, JV with Amec Foster Wheeler (now JV with Redecam, Italy for Japan to manufacture USA for manufacture of corrosion- Sumitomo SHI FW Energia, Oy) for manufacture, testing, commissioning of specialized & critical Process resistant metals & alloys process engineering their Global Boiler Bag Filters Equipment equipment Projects
03 February 2020 Investor13 Presentation 13 Building Strength with Technology Partnerships
Amec Foster Wheeler, USA Fuel Tech Inc., USA - for Feedwater Heaters and Surface Condensers - for reduction of Particulate Matter emissions by use of (now with Wood Group, UK) Electrostatic Precipitators performance improvement technologies (especially Flue Gas Conditioning) AP&T, Sweden - for NOx reduction processes by use of Urea or Ammonia (SNCR) - for Press Hardening Lines used for forming of High Strength Steel Automobile Body Parts Siemens Heat Transfer Technology b.v. Netherlands - for Heat Recovery Steam Generators Babcock Power Environmental Inc, USA - for SOx reduction process by use of Wet Flue Gas Desulfurization (FGD) Sumitomo SHI FW Energia Oy, Finland Units - for Circulating Fluidized Bed Combustion (CFBC) Boilers up to 99.9 Mwe BHI FW Corporation, USA - for Oil & Gas, Shop Assembled Water Tube Packaged Boilers - for Pulverized Coal Fired Sub-Critical Boilers and Super-Critical Boilers up to 260 Tonnes per hour (60 to 1000 Mwe) Thermal Engineering International (TEi), USA Bosch Projects, South Africa - for Screw Plug (Breech Lock) Heat Exchangers - for Chainless Cane Diffusers and other Sugar Machinery equipment - for Waste Heat Recovery through Process Waste Heat Boilers - for Sulphur Condensers CB&I Technology Inc., USA - for Solar Thermal Heat Exchangers - for Helix Heat Exchangers
Envirotherm GmbH, Germany - for Electrostatic Precipitators (ESP) up to 1000 Mwe
03 February 2020 Investor14 Presentation 14 Engineering for Excellence - Our Business Segments
Isgec is a significant global player across business areas in Manufacturing and EPC
Manufacturing Engineering & Projects
Process Equipment Sugar Plants & Distilleries
Air Pollution Control Equipment Iron & Steel Castings Industrial Boilers Boiler Tubes & Panels Power Projects Presses Bulk Material Handling
Contract Manufacturing Buildings & Factories
Liquefiable Gas Containers Industrial Waste Water Treatment
03 February 2020 Investor15 Presentation 15 Catering to Wide Spectrum of Industries
Railways Power Fertilizer Cement Mines
Ports Oil & Gas Steel Chemical Space
Automobiles Defence Sugar Distillery Paper Water Treatment
03 February 2020 Investor16 Presentation 16 Serving Global and Domestic Clients
03 February 2020 Investor17 Presentation 17 Technology Infusion across the Years
1964 1985 1998 2006 2009 2010 2012 2016 2017 2020
Babcock John Thompson, UK Power USA Boilers Wet FGDs Envirotherm, Germany ESPs Riley Power HITZ USA Critical Process Process Rovetta Presse, Italy Equipment Fired Mechanical Presses ABB Lummus AP&T Heaters Heat Transfer Hot Stamping Helixchangers presses
Fuel Tech, USA NOx solutions Foster Wheeler, USA, (Now Sumitomo SHI Sumitomo SHI FW Energia FW Energia, Oy) SIEMENS Heat OY, Finland CFB Boilers Foster Wheeler North America Transfer Corporation (Now BHI FW Technology, The Semi-Dry FGD Corporation,USA) Netherlands Pulverised coal fired Boilers HRSGs Tei USA Waste Heat Boilers, HP Heat 03 February 2020 Exchangers Investor18 Presentation 18 Standing Strong with Global Quality Benchmarks
Conformitè Europëenne Quality Management System–Approved by Lloyds Register of Quality Assurance
Environment Management Occupational Health & Safety Management System-Approved by DNV GL System Business Assurance
National Board, USA, 'R’ Symbol, ‘NB’ Mark 'S' 'U' 'U-2' & 'U-3' Stamps
Approval for Liquefiable Class I fabricator of Fusion Gas Containers Welded Pressure Approved Foundry from Lloyd’s Register of Shipping China Safety and Quality License
03 February 2020 Investor19 Presentation 19 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor20 Presentation 20 Positioned No.1 / No. 2 in most Business Lines
Market Leadership Rankings Hydraulic & Mechanical Presses Process Equipment
Sugar Plants Slop Fired Boilers ET 500 236 (2020) 279 (2019) CFB Boilers Oil & Gas Boilers Fortune India 500 220 (2020) 259 (2019)
Traveling Grate Boilers Bubbling Bed Boilers
Liquefiable Gas Containers Made to order large steel castings EPC Projects
03 February 2020 Investor21 Presentation 21 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor22 Presentation 22 Performance Highlights
Q3FY21 – Good performance despite the challenging environment In INR Mn Total Revenue EBITDA PAT 1,475 778 17,148 1,316 1,220 630 649 13,516 14,234
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 9M FY21 - Strong Operating Performance despite headwinds s
3,755 1,846 43,540 38,498 2,862 1,366
YoY YoY YoY 12% 31% 35%
9M FY20 9M FY21 9M FY20 9M FY21 9M FY20 9M FY21 03 FebruaryFigures 2020 as per consolidated financials Investor23 Presentation 23 Financial Performance Trend
Revenue EBITDA PAT In INR Mn
2,483 58,821 4,853 50,507 46,296 4,130 1,905 1,845 38,079 3,755 1,684 40,559 38,259 3,540 3,350 3,567 1,440 1,491
FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21
Segment Revenue
9M FY21 25% 61% 14% Robust revenue led by strong execution and healthy orderbook, in a very competitive market FY20 26% 64% 9%
FY19 29% 61% 10% Strong order book, supported by best-in-class
FY18 37% 43% 20% capabilities, provide healthy growth visibility
Manufacturing EPC Sugar
Figures as per consolidated financials 03 February 2020 Investor24 Presentation 24 Key Ratios
Total Debt/Equity Interest Coverage Ratio Turnover Ratio
8.3 0.6 13.6 7.8 6.9 0.5 10.9 6.4 10.0 5.2 4.9 5.0 0.4 8.2 4.9 4.1 4.0 0.3 6.3 6.3 3.3 0.2 2.5 0.1
FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21
* Total Debt includes all interest bearing liabilities. Fixed assets Inventory Interest coverage ratio= EBIT/Interest Fixed asset turnover= Operating Revenue/Average fixed assets, Inventory turnover= Operating Revenue/Average Inventory
03 FebruaryFigures 2020 as per FY20 consolidated financials Investor25 Presentation 25 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance
5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor26 Presentation 26 Segment Wise Highlights EPC Manufacturing Sugar 5.2% 5.2% 14.5% 24.3% 4.2% 13.9% 7.6% 6.5% 8.7% 10,311 5,588 2,187 9,825 1,611 3,540 1,560 3,083 8,735 YoY QoQ YoY QoQ YoY QoQ 5% 12% 37% 15% 3% 29%
Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21
8.9% 16.0% 5.1% 3.7% 7.5% 8.0%
28,292 12,613 5,617 10,036 4,003
24,578 YoY YoY YoY 13% 20% 40%
9M FY20 9M FY21 9M FY20 9M FY21 9M FY20 9M FY21
PBIT Margins Revenue (Rs in mn) 03 FebruaryFigures 2020 as per consolidated financials Investor27 Presentation 27 Order Book Composition
Private Engineering Goods 56% 4% Others PSU and 8% Power Government Sector wise Steel, Cement & 44% Aluminum 32% 7%
Chemicals, Petrochemicals & Fertilizers Industry wise Export 9% composition 16%
Geography Refineries wise 10%
Domestic Sugar 84% Railways 15% 15% Order Book Rs. 68,630 mn 03 February 2020 Investor28 Presentation 28 Highlights of new orders booked
• 10000 TCD Sugar Plant, with 40 MW Power Plant and Distillery on EPC basis from KPR Sugar and Apparels. • 11.5 MW Waste to Energy Plant (with Consortium partner Hitachi Zosen India Pvt. Ltd.) for Karnataka Power Corporation. • De NOx (Combustion Modifications) Package for Wall Fired Boilers for existing customer - OPG Power Generation. • Cooling Stacks and Superheaters, from Danieli Corus India / Arcelor Ukraine and Andritz USA / Alberta Canada • 175 TPH CFBC Boiler from SRF, 2 x 60 TPH Gas fired Boiler from Indian Oil Corporation, 2 x 65 TPH CFBC Boilers from Birla Corporation, and 29 TPH Cement Waste Heat Recovery Boiler from Dalmia. • 3500 TCD Sugar Plant and 12.5 MW Cogen Plant from Shripati Sugar • Remnant Life Assessment Study (RLA) for Boilers from Tata Steel
03 February 2020 Investor29 Presentation 29 Agenda
1 Company Overview
2 Business Capabilities
3 Market Leadership
4 Financial Performance 5 Business Highlights
6 Key Investment Highlights
03 February 2020 Investor30 Presentation 30 Key Investment Highlights
Presence in Comfortably Leadership Continued focus Geographically Constant Multiple Core placed to position in on niche diversified Forays into Sectors- Survive Down most technologies portfolio Futuristic Spreading cycles businesses mitigating Business Lines Market Risk concentration risk
03 February 2020 Investor31 Presentation 31 THANK YOU
ISGEC HEAVY ENGINEERING LIMITED, INDIA [email protected] | www.isgec.com Registered Office Radaur Road, Yamunanagar - 135001, Haryana, India CIN No.: L23423HR1933PLC000097
03 February 2020 32