BHEL Share Price Jumps As Q3 Net Profit More Than Doubles

Bharat Heavy Electricals Ltd.'s shares rose more than 4% after the company's third-quarter earnings showed profit of the firm surged. In fact, the consolidated net profit more than doubled, beating analysts' estimates.

The power equipment manufacturer's bottomline rose to Rs 135 crore during the October–December period from Rs 60.3 crore in the same quarter the previous year, according to an exchange filing on Tuesday.

The consensus estimate of analysts tracked by Bloomberg was Rs 121 crore. The revenue rose 32% to Rs 7,277 crore versus Rs 5,504 crore. This beat the Bloomberg estimate of Rs 6,792 crore.

Ebitda rose 41% to Rs 304 crore versus Rs 216 crore. The estimates stood at Rs 302 crore. The margin expanded 30 basis points to 4.2% against 3.9%, while the estimate was at 4.4%.

The uptick in revenue is attributed to a 32% growth in both of its segmental revenues — power and industry.

BHEL's Ebitda growth was due to higher topline growth and inventory reversal of Rs 310.7 crore. The company's net-profit growth was due to the effect of higher revenue and Ebitda growth.

BHEL Ltd share price rose as much as 4.63% during the day to Rs 196.30 apiece on the NSE. It was trading 3.16% higher at Rs 193.54 apiece, compared to an 0.34% advance in the benchmark Nifty 50 as of 9:39 a.m.

The stock was down 12.02% in the last 12 months. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 36.3.

Seven out of the 17 analysts tracking the company have a 'buy' rating on the stock, two recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 238.19, implying an upside of 22%