BHEL Q3 Results Review - Business Revival, Diversification On Cards: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Bharat Heavy Electricals Ltd.’s Q3 FY23 revenue grew 2.5% YoY to Rs 52.6 billion, led by 7% YoY growth in power segment, which was offset by 21% YoY decline in industrial segment revenue. Gross margin contracted 400 basis points YoY to 30%, but expanded 100 bps QoQ. Other expenses declined 97% YoY, which we believe was due to provision reversal. This led to Ebitda growth of 62% YoY to Rs 1.4 billion. Industrial order intake was impressive at Rs 16 billion (up 142%), which ranged across supply of transformers, propulsion equipment, substations, gas compressors, among others. Power order intake was Rs 16.5 billion, down 37%. Total order intake was flat at Rs 120 billion. BHEL's orderbook now stands at ~Rs 1.03 trillion (4.5 times trailing twelve months sales). We await revival in execution in industrial segment. Factoring in lower execution in industrial segment and lower than expected other expense, we adjust our estimates accordingly. Nevertheless, we keep our FY25E earnings per share unchanged as execution of the recently-won orders will by then gather pace and boost profitability as well..Click on the attachment to read the full report:.HAL Q3 Results Review - Growth Visibility Remains Strong: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BHEL Q3 Results Review - Business Revival, Diversification On Cards: ICICI Securities

BHEL’s efforts to improve cashflow and reduce receivables, should help build sustainable profitable growth.

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