Bharat Heavy Electricals Ltd. (BHEL) gained as much as 7.6 percent after it reported a net profit for the fourth consecutive quarter.
Net profit came in at Rs 93.5 crore compared to a loss of Rs 1,084.9 crore in the same quarter last year, according to the company's financial results posted on the stock exchanges. Analysts tracked by Bloomberg had forecast a profit of Rs 76.55 crore.
The bottomline beat estimates despite lower other income which fell 20.52 percent, year-on-year, to Rs 135.75 crore.
Total income jumped 18.7 percent to Rs 6,325.4 crore from Rs 5,327.2 crore, also exceeding analysts' estimates, on the back of better execution. This was also aided by a 44.64 percent jump in other operating income, which includes earnings from ancillary operational activities to come in at Rs 137.96 crore.
The total order backlog also fell 17 percent, year-on-year to Rs 98,400 crore as execution improved.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 223.9 crore compared to an EBITDA loss of Rs 1,638.7 crore. The company also delivered EBITDA margins of 3.53 percent.
Better execution and cost optimisation helped the capital goods major beat estimates in the third quarter. While the topline figure was marginally higher than the Bloomberg consensus estimates, the bottomline surpassed expectations by a substantial margin.
Segmental Performance
- EBITDA from the power business stood at Rs 590.26 crore as compared to a loss of Rs 1,164.08 crore in the corresponding quarter last year.
- The industrial segment continues to be a drag with the EBITDA loss stood at Rs 118.05 crore, compared to a loss of Rs 97.22 crore in the corresponding quarter in the previous year.
The board has declared an interim dividend of Rs 0.80 per share. Shares of the government-owned company gained 6 percent to trade around Rs 152.6 as of 2:40 p.m.
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