State--owned power equipment maker BHEL has disappointed the
street by reporting lower-than-expected topline and bottomline numbers while
the only positive was its EBITDA margin in the second quarter of financial year
2012.
Net profit fell by 9.77 percent year-on-year to Rs 1,274
during the quarter while revenues grew marginally to Rs 10,399 crore from Rs
10,299 crore year-on-year. Shares of the company declined 4.5% post the
earnings announcement.
Analysts on an average had expected net profit of Rs 1,446
crore on revenues of Rs 11,448 crore for the quarter.
BHEL’s outstanding order book at Rs 1.22 lakh crore, down
25%, YoY is quite disappointing, say analysts. Order inflow has been impacted
due to structural issues related to coal linkages, environment/forest
clearances, land acquisition and gas availability. Industrial orders also
remain weak. Corporate capex recovery has not yet commenced owing to lower
demand and higher borrowing costs in the economy
However, BHEL will continue to see 2 more years of poor performance
--- things are expected to look up only from FY16, say brokerages. Order book
will improve only when the sector will overcome hurdles like fuel and lack of
off take arrangements.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment