State-run Bharat Heavy Electricals Ltd. (BHEL) saw its share price jump over 4.5% on Wednesday, October 14, after its September quarter results turned out to be a beat on analyst expectations by a wide margin across parameters.
BHEL reported a 23.8% revenue growth figure in the September quarter. The ₹9,300 crore number was higher than the CNBC-TV18 poll of analysts, which stood at ₹9,236 crore.
Net profit for the period stood at ₹810 crore, which is more than 2x higher than the year-ago profit figure of ₹368 crore. The CNBC-TV18 poll had pegged the figure to be 654.4 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹1,026 crore, a growth of 77% on a year-on-year basis, and also higher than the CNBC-TV18 poll of ₹881 crore.
EBITDA margin for the quarter expanded by 330 basis points to 11% from 7.7% in the year-ago quarter. The CNBC-TV18 poll had projected a figure of 9.5%. According to analysts, this figure is the highest in the second quarter in the last 13 years.
BHEL’s margins saw expansion despite other expenses rising to ₹721 crore at the end of the September quarter, from ₹391 crore last year.
Among BHEL’s various business segments, the Power segment saw revenue growth of 16.95% from last year to ₹6,637.9 crore, while the industry segment saw 45% topline growth from last year to ₹2,662.5 crore.
EBIT margin for BHEL’s power business expanded to 12.93% from 10.47%, while industry segment margins expanded significantly to 19.46% from 15.25% a year earlier.
At the end of the June quarter, BHEL’s cash from operations stood at ₹1,907 crore compared to a negative ₹1,182 crore during the same quarter a year ago.
BHEL’s board has also approved investing ₹500 crore in thermal and nuclear set manufacturing facilities at Haridwar.
BHEL, in its investor presentation said that its outstanding order book, at the end of the September quarter, stood at ₹2.57 lakh crore, registering a growth of 17.27% last year.
The company received orders worth ₹4,000 crore in the September quarter, taking its order inflow for the first half of the year to nearly ₹30,000 crore.
Key orders won by BHEL during the quarter include Heo and Tato-I hydro packages, 265 main traction transformers, FR6B turbine, green-ammonia and recycle-gas compressors, its investor presentation stated.
BHEL also added capacity worth 2,260 MW during the first half of the current financial year, as against its guidance of 4,790 MW.
Shares of BHEL are at the day’s high, currently trading 4.4% higher at ₹462. The stock has now extended its year-to-date advance to 60%.