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Informist, Monday, Oct. 28, 2024

By Avishek Rakshit

KOLKATA – Rising revenues from the energy business vertical and a strong order book led Bharat Heavy Electricals Ltd. report a profit after tax of INR 966.7 million during Jul-Sept and take the Street by surprise, which had earlier predicted the state-owned company to remain in the red. The company’s revenue outpaced the outgo on costs, which helped the company report a profit for the first time after losses in the past five quarters.

Bharat Heavy Electricals reported a revenue of INR 65.8 billion, which grew by 28.5% on year, mainly led by the energy business segment. The revenue growth was also far more than what sector analysts had projected. Revenues from the power vertical soared by 23.5% on year to INR 50.3 billion. The company reported a loss after tax of INR 583 million on revenues of INR 51.3 billion in the year-ago period.

The Street, which had factored in fresh orders for the company worth INR 305 billion during Jul-Sept, expected it to report a loss after tax of INR 1.7 billion, and revenues of INR 59.8 billion. Last month, Bharat Heavy Electricals won a tender from energy major NTPC Ltd to engineer, procure, and construct a 800 MW supercritical thermal power plant for its existing project in Sipat in Chhattisgarh. In August, it had bagged INR 110 billion order from an Adani Power Ltd. subsidiary to supply equipment and supervise the construction and commissioning for three power projects, each 1600 MW in Rajasthan and Madhya Pradesh. More