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BHEL: Power Segment Revenues Drive Growth - Views on News from Equitymaster
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BHEL: Power Segment Revenues Drive Growth
Sep 9, 2016

BHEL has announced first quarter results for the financial year 2016-2017. The company has reported a 29% YoY growth in sales, and a 54% YoY rise in net profits during the period. Here is our analysis of the results.

Performance Summary
  • Net sales for the company grew by 29% YoY during the quarter.
  • Operating profits swung from a loss Rs 1.8 billion during 1QFY16 to a profit of Rs 710 million during the current quarter.
  • The company reported a 54% YoY growth in net profits.
  • The company ended the quarter with an order book of Rs 1.08 trillion, a 7% YoY fall.

    Financial performance: A snapshot
    (Rs m) 1QFY16 1QFY17 Change
    Sales 42,800 55,228 29.0%
    Other operating income 877 997 13.7%
    Expenditure 45,506 55,514 22.0%
    Operating profit (EBDITA) -1,829 710
    Operating profit margin (%) -4.2% 1.3%
    Other income 4,913 2,493 -49.2%
    Interest 33 57 73.3%
    Depreciation 2,425 2,182 -10.0%
    Profit before tax 626 965 54.3%
    Tax 122 188 54.5%
    Profit after tax/(loss) 504 778 54.2%
    Other comprehensive income -179 -213
    Total comprehensive income 326 564 73.3%
    Net profit margin (%) 1.2% 1.4%
    No. of shares 2,448
    Basic & Diluted earnings per share (Rs)* -3.6
    P/E ratio (x)* NA

    * On a trailing 12-months basis


    Segment-wise performance
    (Rs m) 1QFY16 1QFY17 Change
    Power
    Revenue 32,898 43,355 31.8%
    % share 74% 76%
    PBIT margin 6.5% 7.2%
    Industry
    Revenue 11,312 13,857 22.5%
    % share 26% 24%
    PBIT margin 0.3% 6.1%
    Gross Total*
    Revenue 44,210 57,212 29.4%
    PBIT margin 4.9% 6.9%

    * Excluding inter-segment adjustments & Excise Duty

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