|Bharat Heavy Electricals (BHEL) on Wednesday reported a net profit of `155.6 crore, up 92.6% year-on year (y-o-y), for the three months to June.|
The profits come off a low base and were below analysts’ estimates. The company recorded a revenue of Rs 5,790 crore, up 8%, in Q1FY19. Earnings before interest taxes depreciation and amortisation (Ebitda) was `288 crore while the Ebitda margin was 4.9%. The engineering firm’s order book stands at around Rs1.17 lakh crore.
The state-owned company spent Rs250 crore lower on excise duty and depreciation and amortisation expenses than the corresponding quarter last year. It also gained about `300 crore y-o-y from changes in product inventories.
The company said the profit was achieved “through prudent strategies of accelerated execution, cost control and resource optimisation measures”. Emission control equipment for Telangana power plants constituted major orders won by BHEL in the quarter.
As reported by FE earlier, the drive to make power plants compliant with environmental norms opens up a Rs1.3-lakh-crore opportunity in the next three years for emission control equipment providers. The company’ profit from the power business segment increased by more than 11% to `487.8 crore.
The company has also received significant orders from the industry business segment including a 120 MW blast furnace/coke oven gas based captive power plant from Tata Steel, 20 MW solar power project from Gujarat Alkalies and Chemicals, and 10 MW solar project from Gujarat State Fertilizers and Chemicals.
BHEL has bagged orders from the Indian Railways for propulsion systems, traction motors, and transformers for trains.