BHEL shares tank 8% after Q4 results miss street expectations

Shares of Bharat Heavy Electricals Limited (BHEL) fell as much as 7.58 per cent to hit an intraday low of Rs 295 per share, on Wednesday.

The fall came after the company announced its Q4 results, which missed street expectations.

BHEL’s net profit fell approximately 26 per cent on a year-on-year (Y-o-Y) basis to Rs 489.6 crore in the March quarter of financial year 2024 (Q4FY24), from Rs 658 crore in the same quarter a year ago (Q4FY23).

The company’s revenue rose marginally (0.4 per cent) to Rs 8,260.3 crore in Q4FY24, from Rs 8,227 crore in Q4FY23.

BHEL’s earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, dropped 30.6 per cent to Rs 727.9 crore in Q4FY24, as compared to Rs 1,049 crore in the same quarter a year ago.

Ebitda margin, meanwhile, squeezed 400 basis points (bps) to 8.8 per cent in March quarter of FY24, from 12.8 per cent in the March quarter of FY23.

The Board has recommended a final dividend of 0.25 per share for FY24. “Final dividend, if declared by the company in the Annual General Meeting shall be paid/ dispatched within 30 days from the date of Annual General Meeting,” BHEL said.

According to reports, analysts at Morgan Stanley have recommended an 'equal-weight' rating on BHEL with a target price of Rs 220, citing the earnings miss as a key factor. Similarly, CLSA has recommended a 'Sell' rating with a target price of Rs 189, expressing surprise at the company's decline in Q4 profit after tax (PAT).

The market capitalisation of BHEL is nearly 1.05 lakh crore, according to Bombay Stock Exchange (BSE).
The 52-week high of the stock is Rs 322.35 while its 52-week low is Rs 77.30 per share.

At 10:06 AM, shares of BHEL were trading 5.58 per cent lower at Rs 301.40 per share. In comparison, S&P BSE Sensex was trading 0.16 per cent higher at 74,070.55 levels.