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Last Updated : Aug 07, 2015 05:10 PM IST | Source: Moneycontrol.com

BHEL Q1 shocks; profit tanks 83%, EBITDA loss Rs 209 cr

Revenue dropped 15.5 percent to Rs 4,280.8 crore in June quarter compared to Rs 5,068 crore in the same quarter last fiscal.


Moneycontrol Bureau


Bharat Heavy Electricals (BHEL) disappointed street on Friday with first quarter profit falling 82.5 percent to Rs 33.9 crore compared to Rs 193.5 crore in the year-ago period, impacted by lower revenue and loss at operating level. The stock price lost more than 10 percent intraday.


Other income, which has supported the bottomline to remain in black, grew by 41.6 percent to Rs 492.4 crore during the quarter compared to Rs 347.8 crore year-on-year.

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According to a CNBC-TV18 poll, profit was expected at Rs 217 crore (up 12.2 percent) on revenue of Rs 5,181 crore (up 2.2 percent) for the quarter.


Revenue dropped 15.5 percent to Rs 4,280.8 crore in June quarter compared to Rs 5,067.6 crore in the same quarter last fiscal, dented by power business.


Power business has registered a 19 percent degrowth at Rs 3,357 crore with EBIT (earnings before interest and tax cost) down 59 percent (at Rs 216.2 crore) while industry revenue increased 0.9 percent year-on-year to Rs 1,143.6 crore with EBIT down 92.7 percent (at Rs 2.9 crore) in first quarter of FY16.


On sequential basis, profit crashed 96.2 percent and revenue plunged 65.4 percent compared to Rs 888.35 crore and Rs 12,368.4 crore in the year-ago period, respectively.


The state-run power equipment maker said it has an outstanding order book of about Rs 1.16 lakh crore at the end of June quarter, up 19.3 percent compared to Rs 97,400 crore in same quarter last year.

It has posted an EBITDA loss (earnings before interest, tax, depreciation and amortisation - operating loss) of Rs 209 crore (for the first time in many years) against operating profit of Rs 218 crore in the corresponding quarter of last fiscal. Analysts estimated operating profit at Rs 299 crore, up 37.1 percent.

IIFL will reduce its rating for BHEL and may downgrade the rating further. The firm has set target price of Rs 225 and may lower it further if the management is negative.

Speaking to CNBC-TV18, Tarang Bhanushali, IIFL says June quarter is generally the weakest and the revenues will pick up in the second half on the bagged orders, while revenues from Telangana project will come only by FY17, he adds.

At 14:13 hours IST, the scrip of Bharat Heavy Electricals was quoting at Rs 256.90, down Rs 25.30, or 8.97 percent amid high volumes on the Bombay Stock Exchange.

Posted by Sunil Shankar Matkar



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First Published on Aug 7, 2015 01:49 pm
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