ISGEC Heavy Engineering shows fluctuating financial performance. While compounded profit growth is strong, sales growth has been inconsistent. Quarterly sales demonstrate variability. The contribution from other income is relatively low, indicating that profit is primarily from core operations.

Sales have grown from ₹3,952 Cr. in Mar 2015 to ₹6,422 Cr. in Mar 2025, showing an overall positive trend. However, sales dipped between Mar 2017 and Mar 2018. The compounded sales growth over 10 years is 5%. Profitability has improved, with net profit rising from ₹123 Cr. in Mar 2015 to ₹356 Cr. in Mar 2025. The compounded profit growth over 10 years is 12%. Quarterly sales show fluctuations. For instance, sales grew from ₹1,596 in Mar 2022 to ₹1,868 in Mar 2024, then decreased to ₹1,744 in Mar 2025. The contribution from other income to net profit is relatively minor, suggesting core operations drive profit.

The capital efficiency and returns for ISGEC Heavy Engineering are mixed. ROCE has fluctuated, while ROE shows moderate returns. Asset turnover indicates effective use of assets, but the increasing cash conversion cycle suggests declining efficiency in working capital management. The Cash Conversion Cycle has increased from 42 days in Mar 2015 to 183 days in Mar 2025, indicating a deterioration in working capital management.

ROCE has decreased from 23% in Mar 2017 to 14% in Mar 2025. ROE is 11.30% as of Mar 2025. Sales to Total Assets measures how efficiently a company uses its assets to generate sales and this ratio has remained reasonably stable, suggesting consistent asset utilization. The increasing cash conversion cycle suggests that the company is taking longer to convert its investments in inventory and accounts receivable into cash, indicating declining efficiency in working capital management.

ISGEC Heavy Engineering exhibits moderate financial health. Debt levels are manageable. Interest coverage is adequate. The company has a history of dividend payouts. Borrowings have fluctuated, increasing to ₹1,235 Cr in Mar 2023 before decreasing to ₹861 Cr in Mar 2025.

The debt-to-equity ratio has remained relatively stable, indicating moderate leverage. Interest coverage, calculated as Operating Profit / Interest, is adequate. Dividend payout has been inconsistent. For example, the dividend payout ratio was 12% in Mar 2015 and Mar 2016, increased to 33% in Mar 2019, then decreased to 0% in Mar 2025.

ISGEC Heavy Engineering's strategic and operational indicators present a mixed view. The company shows business diversification through its various segments. Working capital management has deteriorated as indicated by rising debtor and inventory days. Fixed asset management shows strategic investments and growth.

Debtor days have increased from 96 in Mar 2015 to 161 in Mar 2025, indicating a longer time to collect receivables. Similarly, inventory days have fluctuated, with a recent increase to 143 in Mar 2025. These trends suggest deteriorating working capital management. Gross block and CWIP (Capital Work in Progress) values indicate ongoing investments in fixed assets to support growth. The company appears to be strategically investing in its asset base.

There is no specific data available to accounting quality red flags. This suggests that the company’s financial reporting is transparent.

There is no specific data available regarding foreign exchange or interest rate exposure. This absence of information makes it difficult to determine the company's vulnerability to currency fluctuations or changes in interest rates.