BHEL Strong order book Q4 FY23-24 Analysis

 

·         BHEL Results Q4 FY 23-24:-

BHEL finally announced much awaited financial results. Q4 FY 23-24 results highlights are as below:-

1.      BHEL reported EBITA (Earnings before Interest, Tax and Depreciation) stood at Rs.892.78 crores Vs Rs.1160.6 Last financial year fourth quarter.

2.      Net profit declined to Rs.484.36 crores Vs Rs.645.13 crores year ago Q4 period.

3.      If we see profit Vs Last quarter i.e. December quarter than profit seems to risen by multifold and in Q3 FY 23-24 company reported profit of only Rs.46.31 crores.

4.      Revenue from operation increased only marginally i.e. company reported revenue of Rs.8260.25 crores Vs Rs.8227.99 crores in year ago period.

5.      Company has announced dividend of Rs.0.25 per share having face value of Rs.2.

6.      Total expenses in this quarter increased from Rs.7411.64 crores to Rs.7794.11 crores in this fiscal Q4.

 

Main disappointment in Results:-

1.       Company reported flat revenue.

2.      Margin has been decreased considerably from 14.3% to 8.8% i.e. drop of 550 basis points.

3.      On Yearly basis margin reduced by nearly 400 basis points.

4.      Profit for this quarter decreased by 25%.

 

Main Positives:-

1.      Strong commentary from management which said that they are expecting compounded revenue getting increased by 12% to 15% in medium term.

2.      Company has order of 80 Vande Bharat trains.  

3.      Company has outstanding order book of R