Newsletter
BHEL delivered a strong set of Q3 results, but the stock still slipped after the numbers came out.
Here’s what stood out:
Net profit: up 190% YoY at ₹390 cr vs ₹134.70 cr
Revenue: up 16.4% YoY at ₹8,473 cr vs ₹7,277 cr
The company also kept its momentum going from Q2, helped by better operating leverage, basically, it’s getting more output from the same cost base.
What’s driving the growth: the power business remained the heavyweight, bringing in ₹6,322.3 crore for the quarter. The industry segment added another ₹2,150.7 crore. Both segments grew versus last year, suggesting order execution is improving and projects are moving faster.
Why did the stock fall: the board approved a “short closure” of its planned new plant in Varanasi, citing the current business environment.
In simple terms, the company is ending the project early and shifting the planned products to its existing factories instead.
