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BHEL: Another quarter of a positive bottomline - Views on News from Equitymaster
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BHEL: Another quarter of a positive bottomline
Nov 14, 2016

BHEL has announced second quarter results for the financial year 2016-2017. The company has reported a 12% YoY growth in sales, and a Rs 1.1 billion net profit during the period. Here is our analysis of the results.

Performance Summary
  • Net sales for the company grew by 12% YoY during the quarter.
  • Operating profits swung from a loss Rs 4.4 billion during 2QFY16 to a profit of Rs 1.6 billion during the current quarter.
  • Net profits went from a loss Rs 1.8 billion during 2QFY16 to a profit of Rs 1.1 billion
  • The company ended the quarter with an order book of Rs 1.03 trillion, an 8% YoY fall.

    Financial performance: A snapshot
    (Rs m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Sales 58,445 65,508 12.1% 101,245 120,735 19.3%
    Other operating income 962 1,137 18.2% 1,838 2,134 16.1%
    Expenditure 63,786 65,093 2.0% 109,292 120,608 10.4%
    Operating profit (EBDITA) -4,379 1,551 -6,208 2,262
    Operating profit margin (%) -7.4% 2.3% -6.0% 1.8%
    Other income 3,739 1,961 -47.6% 8,652 4,454 -48.5%
    Interest 44 50 15.3% 76 107 40.1%
    Depreciation 2,249 2,080 -7.5% 4,675 4,262 -8.8%
    Profit before tax -2,933 1,382 -2,307 2,347
    Tax -1,125 292 -1,004 479
    Profit after tax/(loss) -1,808 1,090 -1,304 1,868
    Other comprehensive income -179 -85 -357 -298
    Total comprehensive income -1,986 1,005 -1,661 1,569
    Net profit margin (%) -3.0% 1.6% -1.3% 1.5%
    No. of shares 2,448
    Basic & Diluted earnings per share (Rs)* -2.4
    P/E ratio (x)* NA
    *On a trailing 12-months basis

    Segment-wise performance
    (Rs m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Power
    Revenue 47,550 52,541 10.5% 80,448 95,896 19.2%
    % share 78% 77% 77% 77%
    PBIT margin -0.4% 9.6% 2.4% 8.5%
    Industry
    Revenue 13,254 15,260 15.1% 24,566 29,117 18.5%
    % share 22% 23% 23% 23%
    PBIT margin -3.3% 0.6% -1.6% 3.2%
    Gross Total*
    Revenue 60,804 67,800 11.5% 105,014 125,012 19.0%
    PBIT margin -1.0% 7.6% 1.5% 7.3%
    *Excluding inter-segment adjustments & Excise Duty
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