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Informist, Tuesday, Jan. 28, 2025

 

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--BHEL Oct-Dec net profit INR 1.25 bln vs INR 463.1 mln year ago
--BHEL Oct-Dec revenue INR 72.77 bln vs INR 55.04 bln year ago
--BHEL Apr-Dec net profit INR 89.2 mln vs INR 2.24 bln loss year ago
--BHEL Apr-Dec revenue INR 193.46 bln vs INR 156.33 bln year ago
--BHEL Oct-Dec power segment revenue INR 55.88 bln vs INR 42.34 bln year ago
--BHEL Oct-Dec industry segment revenue INR 16.89 bln vs INR 12.7 bln yr ago

 

By Rajesh Gajra

 

NEW DELHI – The government-owned capital goods major Bharat Heavy Electricals Ltd. reported steady earnings in the December quarter. This was aided by strong top line growth for the second time in a row. The net profit rose, but was below analysts' expectations. On the revenue front, the company beat analyst estimates.

 

In the December quarter, the revenue of the company jumped 32.2% on year to INR 72.77 billion, the highest in 10 quarters, and above the 28.5% on-year rise in the September quarter. Prior to the September quarter, the company's on-year growth in revenue was in single digit in the March and June quarters. The reported revenue was also above three analysts' revenue estimate range of INR 66.18 billion-INR 75.81 billion.

 

BHEL's net profit was up 2.7 times on year to INR 1.25 billion but was below the analysts' net profit estimate range of INR 1.45 billion-INR 2.98 billion. 

 

The net profit growth was largely driven by a 75% rise in the operating profit, or earnings before interest and tax, to INR 7.30 billion in the December quarter. Both the segments of the company--power and industry--posted strong operating profit growth. The power segment's EBIT rose 57% on year to INR 6.25 billion, while the industry segment saw EBIT rising to INR 1.05 billion from INR 200 million in the year-ago quarter.

 

The operating profit growth was robust due to strong revenue growth during the quarter. The power segment's revenue, which made up for 76.8% of the total revenue, rose 32% on year to INR 55.88 billion in Oct-Dec. The industry segment, with a revenue share of 23.2%, saw revenue rising 33.1% to INR 16.89 billion.

 

BHEL had an outstanding order book of INR 1.602 trillion at the end of December quarter, which was nearly the same as that at the end of the previous quarter, according to data in the company's earnings investor presentation. The order inflow in 2024-25 (Apr-Mar) up to the December quarter rose 33% on year to INR 479.5 billion, the data showed. In the December quarter, the order inflow was INR 68.6 billion, up 2.7 times on year, back-of-the-book calculations from the Apr-Dec and Apr-Sep order inflow data of the company's investor presentations showed.

 

BHEL's strong revenue growth was supported by a jump in order inflows. The power sector contributed 82.3% of the total order inflow in FY25 till the December quarter, while industry sector contributed 17.2%, and exports made up for 0.3%.

 

BHEL listed a few prominent orders it received in the December quarter. In the power segment, the company won the bid for main plant package of 3x800 MW Telangana Stage-2 supercritical thermal plant. The company said it has "received a Limited Notice to Proceed from NTPC Ltd. for initiating basic engineering."

 

In the industry segment, the company said it received six prominent orders, including an order for 6,000 MW "Khavda-Nagpur LCC HVDC Terminal Stations, along with AC Transmission systems, at Khavda and Nagpur, in partnership with Hitachi Energy Ltd." In the export market, BHEL said it received an order for supply and supervision of 95 MW generator from Russia, and an order for supply of safety values for a project in Costa Rica. The company said Costa Rica is the 91st country in which it will be carrying out projects execution.

 

For Apr-Dec, BHEL recorded a net profit of INR 89 million against a net loss of 2.24 billion in the same period a year ago. The company's revenue during this period rose 24% on year to INR 193.46 billion.

 

Tuesday, Bharat Heavy Electricals shares ended at INR 187.62 on the NSE, down 3.56%.  End

 

Edited by Akul Nishant Akhoury

 

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