Engineering behemoth, Bharat Heavy Electricals Limited (Bhel) has posted a net loss of Rs 489 m in its first quarter ended June 30, 2002. The performance is much better than the Rs 1,252 m loss it reported in 1QFY02. However, the results again bring to fore the volatile nature of Bhel's earnings. The company had finished FY02 with over 14% topline and 44% bottomline growth.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted Earnings per share*
Historically, Bhel's performance has been volatile quarter to quarter due to the inherent nature of its business. Bhel had a great FY02 and at the end of it the company's orderbook stood at Rs 120 bn. So in all likelihood, Bhel will bounce back again in the coming quarters.
Deffered revenue expenditure
The power industry contributed 61% to Bhel's topline in 1QFY03. The EBIT from the sector was a healthy 21%. However, the EBIT from other industries was negative reflecting the difficult economic environment.
% of sales
% of sales
Total gross revenues
EBIT as % of power sales
EBIT as % of industry sales
The stock trades at Rs 173, a P/E of 7.4x our FY03 expected earnings. While earnings volatility is a concern, we expect Bhel to recover in the coming quarters.
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.
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