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BHEL Q1 Review - Another Loss Making Quarter As Execution Disappoints: Motilal Oswal

BHEL Q1 Review - Another Loss Making Quarter As Execution Disappoints: Motilal Oswal

BHEL Logo Displayed on a Locomotive Engine in Mumbai. (Photographer: Abhijit Bhatlekar/Bloomberg)
BHEL Logo Displayed on a Locomotive Engine in Mumbai. (Photographer: Abhijit Bhatlekar/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bharat Heavy Electricals Ltd. reported another loss-making Q1 FY22, with revenue coming in 12% below our expectation.

It reported a net loss of Rs 4.5 billion, slightly higher than our expected loss of Rs 4.3 billion.

If not for the provision reversal of Rs 1.8 billion, reported losses would have been even higher.

Of the total order book of Rs 1.02 trillion, the executable order book stands at Rs 708 billion.

BHEL is favorably placed in a few level-one orders. However, these orders are yet to finalise into final awarding.

With commodity prices surging since the company was declared Level one in these orders, we see a higher chance of margin turning adverse in new orders as well.

Click on the attachment to read the full report:

Motilal Oswal BHEL Q1FY22 Result Update.pdf

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