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BHEL: Recovery underway, but slowly - Views on News from Equitymaster
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BHEL: Recovery underway, but slowly
Nov 10, 2015

BHEL has announced second quarter results for the financial year 2015-2016. The company has reported 3.2% YoY decline in sales, and a loss of Rs 2 billion during the period. Here is our analysis of the results.
Performance Summary
  • Net sales for the company declined by 3.2% YoY in 2QFY16.
  • Operating profits declined, dipping into the negative during the quarter.
  • The company reported a net loss of Rs 2 billion.
  • The company ended the quarter with an order book of Rs 1.1 trillion, an 8% YoY rise.

Financial performance: A snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Sales 60,276 58,350 -3.2% 110,952 101,157 -8.8%
Other operating income 1,164 1,030 -11.5% 2,038 1,839 -9.8%
Expenditure 58,525 64,122 9.6% 107,895 109,832 1.8%
Operating profit (EBDITA) 2,916 (4,742) -262.6% 5,095 (6,835) -234.2%
Operating profit margin (%) 4.7% -8.0%   4.5% -6.6%  
Other income 1,961 3,733 90.3% 5,439 8,657 59.2%
Interest 126 44 -65.4% 599 76 -87.3%
Depreciation 2,662 2,249 -15.5% 5,388 4,674 -13.2%
Profit before tax 2,088 (3,302) -258.1% 4,547 (2,929) -164.4%
Tax 840 (1,253) -249.2% 1,364 (1,219) -189.4%
Profit after tax/(loss) 1,248 (2,049) -264.1% 3,183 (1,710) -153.7%
Net profit margin (%) 2.0% -3.5%   2.8% -1.7%  
No. of shares         2,448  
Basic & Diluted earnings per share (Rs)*         3.8  
P/E ratio (x)*         50.5  

* On a trailing 12-months basis

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