Newsletter
Bharat Heavy Electricals (BHEL) shares surged nearly 5% after the state-owned engineering company reported Q2 results that beat market expectations.
By the numbers:
Revenue: up 23.8% at ₹9,300 cr vs ₹7,511 cr (YoY)
Net Profit: at ₹810 cr vs ₹368 cr (YoY)
EBITDA: up 76.6% at ₹1,026 cr vs ₹581 cr (YoY)
EBITDA margin: at 11% vs 7.7% (YoY)
Other expenses: at ₹721 cr vs ₹391 cr (QoQ)
What drove the growth: higher revenue and better operating profitability supported the results.
Revenue from BHEL’s power business rose nearly 17% to ₹6,637.9 crore, while its industry business grew 45% to ₹2,662.5 crore compared with a year earlier.
Both businesses also earned more operating profit for every rupee of revenue. The power segment’s EBIT margin rose to 12.93% from 10.47%, while the industry segment’s margin increased to 19.46% from 15.25%.
Orders and expansion plans: BHEL’s board approved a ₹500 crore investment in facilities at Haridwar that manufacture equipment for thermal and nuclear power plants.
At the end of September, its outstanding order book, or the value of orders yet to be completed, stood at ₹2.57 lakh crore, up 17.27% from a year earlier.
BHEL also added 2,260 MW of capacity in the first half of the financial year, against its guidance of 4,790 MW.
