BHEL Q2 PAT may fall 47.8% at Rs 664cr: ICICIdirect

ICICIdirect.com has come out with its second quarter (July-September) earnings estimates for the capital goods sector. The brokerage house expects Bharat Heavy Electricals (BHEL) to report a 42.7 percent growth quarter-on-quarter (down 47.8 percent Y-o-Y) in net profit at Rs 664 crore.

Revenues of Bharat Heavy Electricals are expected to increase by 25.5 percent Q-o-Q (down 22.1 percent Y-o-Y) to Rs 8,106 crore, according to ICICIdirect.com.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 164.8 percent Q-o-Q (down 45.8 percent Y-o-Y) to Rs 1,029 crore.

ICICIdirect.com's Report on Bharat Heavy Electricals:

The broking firm expect BHEL to continue posting dismal Q2FY14E results as the quarter witnessed no big order wins. The slowdown in execution will be significant as we believe revenues will decline 21.6 percent to Rs 8,276 crore. Negative operating leverage will lead to Y-o-Y margin erosion of 560 bps to 12.7 percent in Q2FY14E. PAT is expected to decline 47 percent to Rs 664 crore.

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