Bharat Heavy Electricals Ltd. reported a sharp improvement in its September quarter performance, with net profit, revenue, and Ebitda beating estimates. The company's consolidated net profit rose to Rs 821 crore from Rs 375 crore in the year-ago quarter, while revenue increased 23.8% to Rs 9,300 crore from Rs 7,512 crore year-on-year.
Ebitda surged 76.7% year-on-year to Rs 1,026 crore from Rs 581 crore. Ebitda margin expanded to 11% from 7.7% in the corresponding quarter last year, indicating an improvement in operating profitability.
The company's performance also exceeded Street estimates across key financial parameters. Net profit was above the estimate of Rs 756 crore, while revenue surpassed expectations of Rs 8,319 crore. Ebitda came in higher than the estimate of Rs 843 crore, and Ebitda margin beat the expected 10.1%.
Power And Industrial Businesses Drive Growth
BHEL's power business reported revenue growth of 17% year-on-year to Rs 6,638 crore. Earnings before interest and tax from the segment rose 44% to Rs 858 crore.
The industrial business recorded stronger growth, with revenue increasing 45% year-on-year to Rs 2,662 crore, while earnings before interest and tax from this segment surged 85% year-on-year to Rs 519 crore.
Both businesses contributed to the company's improved quarterly performance, with the industrial segment recording faster growth in revenue and segment earnings.
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Order Inflows And Margins In Focus
Investors will track fresh order inflows in the coming quarters, as no major second-quarter order wins have been disclosed on stock exchanges so far. The margin profile of newly secured thermal power orders will also remain a key focus area.
Working capital management and cash-flow performance are other important factors to watch in management commentary, as investors assess BHEL's ability to sustain its earnings improvement alongside project execution and new order additions.
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