X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Bhel: Orderbook at Rs 135 bn - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 29, 2002

    Bhel: Orderbook at Rs 135 bn

    Engineering behemoth, Bharat Heavy Electricals Limited (Bhel) has posted an 11% YoY dip in 2QFY03 net sales. A dip in the operating margins and higher tax provisions for the quarter resulted in a 26% dip in bottomline. This performance is however better than its 1QFY03 performance where it declared a net loss of Rs 489 m. Also, on a half yearly basis, the picture looks very positive.

    (Rs m) 2QFY02 2QFY03 Change 1HFY02 1HFY03 Change
    Net Sales 14,399 12,891 -10.5% 23,279 21,661 -7.0%
    Other Income 483 564 16.7% 815 799 -2.0%
    Expenditure 12,914 11,634 -9.9% 22,761 20,635 -9.3%
    Operating Profit (EBDIT) 1,484 1,257 -15.3% 518 1,025 97.8%
    Operating Profit Margin (%) 10.3% 9.8%   2.2% 4.7%  
    Interest 185 120 -35.1% 385 238 -38.2%
    Depreciation 411 469 14.2% 829 903 8.9%
    Profit before Tax 1,372 1,232 -10.2% 120 684 469.0%
    Tax -92 147 - -92 88 -
    Profit after Tax/(Loss) 1,464 1,085 -25.9% 213 596 180.3%
    Net profit margin (%) 10.2% 8.4%   0.9% 2.8%  
    No. of Shares (eoy) (m) 244.8 244.8   244.8 244.8  
    Diluted Earnings per share* 23.9 17.7   1.7 4.9  
    P/E Ratio   9.0     32.9  
    *(annualised)            

    On a half yearly basis, Bhel has reported a 7% dip in topline, but has finished 1HFY03 with over 180% growth in bottomline. This improvement shows because in June quarter last year Bhel recorded a net loss of Rs 1.3 bn. Historically, Bhel's performance has been volatile quarter to quarter due to the inherent nature of its business. At the end of the September quarter the company's orderbook stood at Rs 135 bn. So in all likelihood, Bhel is set for a good FY03 and FY04 going forward.

    (Rs m) 2QFY02 2QFY03 Change 1HFY02 1HFY03 Change
    Raw material 6,689 5,467 -18.3% 11,097 9,038 -18.6%
    Staff 3,692 3,628 -1.7% 7,066 7,018 -0.7%
    Others 2,090 2,152 3.0% 3,797 3,810 0.3%
    Deffered revenue expenditure 443 387 -12.6% 800 770 -3.8%
    Total expenditure 12,914 11,634 -9.9% 22,761 20,635 -9.3%

    As per Bhel's release, 'the topline performance in September quarter was affected to a large extent by non-receipt, delayed receipt, cancellation of orders, delay in customer clearances for dispatches, export dispatches not reaching the port in time etc. Two export shipments (of sale value of Rs 840 m) which had been dispatched from the manufacturing centers to the ports, could not be shipped before 30th September '02 (they have since been shipped). These have been shown as finished goods in the quarterly results and do not form part of sales. This has affected the bottomline of the quarter, which otherwise has shown marked improvement in other operational parameters'.

    The power industry contributed 66% to Bhel's topline in 1HFY03. The EBIT from the sector was a healthy 23%. However, the EBIT from other industries only 3% in 1HFY03 reflecting the difficult economic environment.

    Revenue break-up
    (Rs m) 1QFY03 2QFY03 1HFY03
    Power 6,160 10,415 16,575
    % of sales 61.3% 69.4% 66.1%
    Industry 3,894 4,588 8,482
    % of sales 38.7% 30.6% 33.9%
    Total gross revenues 10,054 15,003 25,057
    EBIT break-up
    (Rs m) 1QFY03 2QFY03 1HFY03
    Power 1,282 2,588 3,870
    EBIT as % of power sales 20.8% 24.8% 23.3%
    Industry -47 316 269
    EBIT as % of industry sales -1.2% 6.9% 3.2%

    The stock trades at Rs 160, a P/E of 6.9x our FY03 expected earnings. While earnings volatility is a concern, we expect Bhel to record better growth in the coming quarters.

     

     

    Equitymaster requests your view! Post a comment on "Bhel: Orderbook at Rs 135 bn". Click here!

      
     

    More Views on News

    BHEL: Margins Dip into the Negative (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The company also saw order inflows of Rs 18 billion during the quarter, which was a massive 41% YoY lower than the previous year's quarter.

    BHEL: The Somber Performance Continues (Quarterly Results Update - Detailed)

    Jun 16, 2017

    BHEL has announced fourth quarter results for the financial year 2016-2017 which has seen its fortunes continue to decline.

    BHEL: Project Execution Up, Inflows Down (Quarterly Results Update - Detailed)

    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.

    Cummins Ltd: Domestic Revenues the Saving Grace (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The domestic economy continues to grow largely in areas which are positively impacted through continuing government investments in infrastructure.

    ABB: Large Orders Remain Muted (Quarterly Results Update - Detailed)

    Aug 2, 2017

    Decisions on government initiatives and private investments were stalled in anticipation of upcoming tax restructure.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    BHEL SHARE PRICE


    Aug 21, 2017 03:37 PM

    TRACK BHEL

    BHEL - ELGI EQUIPMENTS COMPARISON

    Compare Company With Charts

    COMPARE BHEL WITH

    MARKET STATS