Friday, May 25, 2012

BHEL Q4 net up 21%, misses order flow guidance


Bharat Heavy Electricals Ltd (BHEL) has reported 21%, year-on-year rise in the March quarter net profit to Rs 3,380 crore  Net sales increased 7.5% to Rs 19,259 crore, YoY mainly due to increased capacities.

EBITDA margin improved at 25.2% for the quarter as against 23.4% in a year ago period. Other income too went up to Rs 399 crore from Rs 368 crore YoY.

Post the announcement of the results, BHEL’s share price rose 2.09% to Rs 212.95.

Meanwhile, for the financial year ended March 2012, the company's net profit increased 17%  to Rs 7,087 crore, YoY. Total income also surged 14% to Rs Rs 49,627 crore, YoY.

The company's implied gross order inflow stood at Rs 6823 crore during the March quarter, taking its FY12 order book to Rs 22096 crore, instead of the earlier guidance of Rs 60,000 crore.

The board of directors have announced a dividend of Rs 3.68 per share.


Going ahead, key concerns for BHEL remain

*Slowing order inflow

*Heightened competition

*BHEL's market share in the BTG space stood at around 65% in 2007   and has now come down to about 40%.

*Margin erosion due to inflationary pressure and heightened competition.



Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd


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