BHEL scores hat-trick with better-than-expected results

Results were helped by Rs 20 crore of provision being written back

The year 2016-17 started on a strong note for Bharat Heavy Electricals Limited or BHEL; December quarter (Q3) results re-iterate that. Net revenues at Rs 6,325 crore increased 18.7 per cent year on year, even as BHEL swung from losses to net profit at Rs 94 crore in Q3 despite a 20 per cent fall in other income. The numbers were significantly higher than Bloomberg's revenue estimate of Rs 6,151 crore and net profit expectation of Rs 76.5 crore. This outperformance lifted BHEL's stock over five per cent on Tuesday. 

Except for employee expenses, operating costs are largely in check, thus