Shares of ISGEC Heavy Engineering Ltd surged three percent intraday on February 24 as the company bagged an order for the supply of seven waste heat recovery boilers.
At 9:35 am, shares of the company were trading 1.2 percent higher at Rs 452.4 on the BSE. The stock performance has been subdued in the past one and three months.
“…ISGEC has bagged prestigious order from a major steel company from eastern India for the supply of seven Waste Heat Recovery Boilers utilising waste gases from DRI Sponge Iron Kiln,” the company release said.
ISGEC Heavy Engineering had previously supplied four Circulating Fluidized-bed Combustion boilers to DRI Sponge Iron.
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As of December end, the company's order inflow was at Rs 1,388 crore and the order backlog stood at Rs 7,752 crore.
Brokerage Sharekhan, owned by BNP Paribas, has maintained a neutral outlook on ISGEC Heavy Engineering Ltd.
Despite a better show in Q3 and sustainable improvement in overall performance a consolidated operating margin may take time as the company’s manufacturing segment is witnessing volatile margins, said the brokerage firm.
Consolidated net sales for the December quarter rose 14 percent YoY to Rs 1,597.06 crore, and net profit, by 34 percent to Rs 62.96 crore.
However, performance was affected by higher commodity prices for fixed-price contracts and long gestation projects. However, commodity prices are stabilising, and new orders are being taken at better margins, which should lead to better operating margins in the long term, Sharekhan said.
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