Bharat Heavy Electricals Ltd. surged as much as 5.6 percent after the government-owned company delivered better-than-expected earnings in the July-September quarter.
Net profit came in at Rs 109 crore compared to a net loss of Rs 180.8 crore in the corresponding quarter last year, the company said in its filing to the stock exchanges. The profit surpassed the Rs 59.28 crore Bloomberg consensus estimate.
Revenue grew 12 percent to Rs 6,664.5 crore from Rs 5,940.7 crore in the same quarter last year.
The earnings before interest, tax, depreciation and amortisation stood at Rs 155.14 crore, compared to the EBITDA loss of Rs 437.92 crore in the July-September quarter last year. EBITDA margins came in at 2.32 percent for the quarter.
Order Book Pain
The company's order book fell for the second consecutive quarter to Rs 1,03,300 crore from Rs 1,10,000 crore in the quarter ended March 2016.
Segmental Performance
- Revenue from the power segment increased 10.4 percent to Rs 5,254.06 crore as against Rs 4,754.97 crore in the same quarter last year.
- Revenue from the industrial segment rose 15 percent to Rs 1,525.97 crore from Rs 1,325.41 crore on a year-on-year basis.
“Topline growth of 12.2 percent was higher than our estimate of 7 percent. This was largely due to higher contribution from industry segment,” Tarang Bhanushali, the assistant vice president of research at IIFL Private Wealth told BloombergQuint in a telephonic interview.
IIFL upgraded the BHEL stock to ‘Accumulate' from ‘Reduce' citing second consecutive quarter of positive EBIDTA and faster execution.
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