BHEL Q1 Results: 40% revenue growth contributes to profitability return; Power biz leads

Shares of Bharat Heavy Electricals Ltd. (BHEL) have now surged to the day’s high on Thursday, July 16, in response to the state-run company reporting results for the June quarter, during which the company returned to profitability.BHEL reported a net profit of ₹382 crore compared to a net loss of ₹454 crore during the same quarter last year.

The return to profitability was aided by a strong topline performance by the company. Revenue growth stood at 40% from last year. BHEL reported a topline of ₹7,697.7 crore compared to ₹5,487 crore during the same quarter last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at a positive ₹504 crore, compared to an EBITDA loss of ₹537 crore during the same quarter last year.
EBITDA margin for the quarter stood at 6.5%.Both of BHEL’s business segments reported growth during the quarter. Revenue from the power business stood at ₹5,919 crore, a growth of 51% compared to the same quarter last year.

Industry business revenue increased by 12% from last year to ₹1,778 crore from ₹1,588 crore last year.

BHEL has more “sell” recommendations from analysts who track the stock, compared to “buy” ratings. Nine out of the 22 analysts tracking the stock have a “buy” rating on the stock, while 10 have a “sell” rating.

Shares of BHEL are recovering from the initial dip and are now trading 4.2% higher at ₹435.75. The stock has risen 50% so far this year.