BHEL's recovery may be steady but slow

Operations have become profitable in FY17 after three years of losses

After posting good results in the quarter ended March 2016, expectations were high on BHEL. But, much to the Street’s disappointment, BHEL’s March quarter (Q4) performance lagged estimates significantly — revenues were at Rs 9,833 crore (down six per cent year-on-year or y-o-y) and net profit at Rs 215 crore (down 57 per cent y-o-y). 

Revenue growth was stunted as the performance of the industry segment (constituted by orders from private power producers) fell by 21 per cent y-o-y to Rs 1,765 crore. Even that of the power segment (mostly catering to state-owned thermal plants) grew only three per cent. 

A sharp