BHEL Q1 Results: Revenue Rises, Loss Widens, and Future Plans Revealed

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BHEL Q1 Results: Net Loss Widens, Revenue Rises

Introduction

Bharat Heavy Electricals Limited (BHEL), India’s largest engineering and manufacturing enterprise in the energy and infrastructure sector, announced its financial results for the first quarter ended June 30, 2023. The company reported a net loss of 3.52 billion rupees, compared to a loss of 1.92 billion rupees in the same quarter last year. The loss was mainly due to lower execution and higher fixed costs amid the COVID-19 pandemic. However, the company’s revenue rose by 7.1% year-on-year to 50.03 billion rupees, driven by higher sales from the power segment. The revenue was also higher than the analysts’ estimates of 47.8 billion rupees.

EBITDA and Order Book

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) were negative at 3.63 billion rupees, compared to a negative EBITDA of 1.7 billion rupees in the same quarter last year. The EBITDA margin was negative at 7.3%, compared to a negative margin of 3.6% in the same quarter last year. The company’s order inflow for the quarter was 32.5 billion rupees, down by 22% year-on-year. The company’s order book as on June 30, 2023 stood at 1.06 trillion rupees.

Sequential Improvement

The company’s performance improved on a sequential basis, as it reported a net profit of 5.98 billion rupees in the fourth quarter of the previous fiscal year. The revenue also increased by 39% quarter-on-quarter from 82.27 billion rupees in the fourth quarter of the previous fiscal year. The company attributed the sequential improvement to the easing of lockdown restrictions and the ramp-up of project execution activities.

Future Outlook

The company said that it is focusing on diversifying its product portfolio, enhancing its competitiveness, reducing its costs, and improving its operational efficiency to overcome the challenges posed by the pandemic and the changing market dynamics. The company also said that it is exploring new opportunities in areas such as defense, aerospace, e-mobility, water, renewables, and urban transportation.

About BHEL

BHEL is a public sector undertaking under the administrative control of the Ministry of Heavy Industries. It was established in 1956 with the help of Soviet technology and has grown to become a global leader in power generation equipment manufacturing. It has a presence in over 76 countries across all six continents and has installed over 180 GW of power generation capacity worldwide. It also offers products and services for various other sectors such as transmission, transportation, oil and gas, and defense.

Conclusion

BHEL is more than just an engineering company. It is a national asset that contributes to India’s economic growth and social development. BHEL is your partner for power and progress.

Disclaimer

This blog post is for informational purposes only and does not constitute any investment advice or recommendation. The information contained herein is based on publicly available sources and may not be accurate or complete. The author does not own any shares or have any affiliation with BHEL or any other company mentioned in this blog post. The author does not take any responsibility for any errors or omissions in this blog post or any losses or damages arising from its use or reliance.

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