BHEL Q2 profit seen up 64% to Rs 268 cr on operational performance

State-run power equipment maker BHEL's second quarter profit is seen rising 64 percent year-on-year to Rs 268 crore, led by operational performance.

Profit in year-ago quarter was at Rs 109 crore.

Revenue during the quarter is expected to increase 2.6 percent to Rs 6,841 crore, compared with Rs 6,664 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

The movement of orders from non-execution to execution category; continued constraint on execution due to operational issues; and trends in provisions, particularly for liquidated damages on project completion would be key to watch out for.

EBITDA (earnings before interest, tax, depreciation and amortisation) may grow 81 percent to Rs 281 crore and margin may double to 4 percent from 2 percent YoY.

Margin expansion may be led by favourable operating leverage and lower legacy order. Analysts expect EBIT in power and industrial segments to be at 12 percent and 7.5 percent, respectively.