BHEL slips after weak Q3 performance; order book at Rs 1.08 lakh crore

Bharat Heavy Electricals (BHEL) fell 1.20% to Rs 210.75 after the company posted a standalone net loss of Rs 163 crore in Q3 FY24 as against a net profit of Rs 31 crore in Q3 FY23.

The public sector undertakings income from operations rose by 7% YoY to Rs 5,273 crore in the third quarter.

Total expenses increased by 9% to Rs 5,816.87 crore in Q3 FY24 over Q3 FY23, due to higher raw material costs (up 19% YoY), higher purchases of bought out items (up 25% YoY) and higher finance costs (up 36% YoY).

EBITDA declined by 83% to Rs 41 crore in Q3 FY24 from Rs 243 crore recorded in Q3 FY23.

Accordingly, the company reported a pre-tax loss of Rs 209 crore in the October December 2023 quarter as compared with a pre-tax profit of Rs 41 crore in the same period last year.

BHELs order inflow upto Q3 FY24 was Rs 36,048 crore, which is higher by 137% as compared with the inflow of Rs 15,232 crore recorded upto Q3 FY23. This was primarily due to 4) due to expansion in core sectors of economy, along with demand for defense products. An order from a refinery helped the company make in an entry into the Industry 4.0 solutions space.

The companys order book as on 31 December 2023 was Rs 1,08,618 crore.

State-run Bharat Heavy Electricals (BHEL) is engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services to the core sectors of economy. As of 31 December 2023, the Government of India held 63.17% stake in the company.

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