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BHEL: Project Execution Up, Inflows Down - Views on News from Equitymaster
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BHEL: Project Execution Up, Inflows Down
Feb 13, 2017

BHEL has announced third quarter results for the financial year 2016-2017. The company has reported an 18% YoY growth in sales, and a Rs 875 million net profit during the period. Here is our analysis of the results.

Performance Summary
  • Net sales for the company grew by 18% YoY during the quarter.
  • Operating profits swung from a loss Rs 16.1 billion during 3QFY16 to a profit of Rs 2.2 billion during the current quarter.
  • Net profits went from a loss Rs 10.9 billion during 3QFY16 to a profit of Rs 935 million
  • The company ended the quarter with an order book of Rs 984 billion, a 10% YoY fall.
  • The company has declared payment of Interim Dividend @ 40% (Rs 0.80 per share) for FY17. Interim dividend shall be paid / dispatched on February 22, 2017.

    Financial performance: A snapshot
    (Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
    Sales 52,319 61,875 18.3% 153,564 182,610 18.9%
    Other operating income 954 1,380 44.6% 2,792 3,513 25.8%
    Expenditure 69,392 61,016 -12.1% 178,684 181,623 1.6%
    Operating profit (EBDITA) -16,120 2,239 -22,328 4,500
    Operating profit margin (%) -30.3% 3.5% -14.3% 2.4%
    Other income 1,708 1,358 -20.5% 10,360 5,812 -43.9%
    Interest 52 263 403.4% 129 370 187.9%
    Depreciation 2,255 2,088 -7.4% 6,929 6,349 -8.4%
    Profit before tax -16,718 1,245 -19,026 3,592
    Tax -5,869 310 -6,873 789
    Profit after tax/(loss) -10,850 935 -12,153 2,803
    Other comprehensive income -179 -60 -536 -358
    Total comprehensive income -11,028 875 -12,689 2,445
    Net profit margin (%) -20.4% 1.5% -7.8% 1.5%
    No. of shares 2,448
    Basic & Diluted earnings per share (Rs)* 2.4
    P/E ratio (x)* 65.2

    * On a trailing 12-months basis


    Segment-wise performance
    (Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
    Power
    Revenue 43,127 50,962 18.2% 123,575 146,858 18.8%
    % share 79% 79% 77% 77%
    PBIT margin -27.0% 11.6% -7.8% 9.6%
    Industry
    Revenue 11,363 13,686 20.4% 35,929 42,803 19.1%
    % share 21% 21% 23% 23%
    PBIT margin -8.6% -8.6% -3.8% -0.6%
    Gross Total*
    Revenue 54,490 64,649 18.6% 159,504 189,661 18.9%
    PBIT margin -23.1% 7.3% -6.9% 7.3%

    * Excluding inter-segment adjustments & Excise Duty

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Aug 22, 2017 03:29 PM

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