Nirmal Bang: BHEL Q1 Review - Weak Execution And Higher Than Expected Loss Amid Lockdown

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Bharat Heavy Electricals Ltd. posted 56% YoY decline in Q1 FY21 revenue at Rs 19.9 billion, 5% above our estimate, but 21% below consensus estimate.Power segment revenue declined 68% YoY to Rs 11.2 billion (59% of total sales) while Industry segment revenue fell 15% YoY to Rs 7.8 billion (41% of total sales).Gross margin fell to 34.1% (versus 42.5% YoY). Lower revenue led to negative Ebitda of Rs 10.6 billion (versus negative Rs 2.7 billion YoY). The loss was higher than our/consensus estimate loss of Rs 7.2 billion/Rs 6.8 billion.Profit before tax was negative Rs 11.9 billion. With deferred tax write-back of Rs 3 billion, net loss stood at Rs 8.9 billion (versus loss of Rs 2.2 billion YoY).Net loss was higher than our/consensus estimate loss of Rs 6.3 billion/Rs 6.5 billion.Order inflow was muted at Rs 14.9 billion, down 62% YoY while order backlog was flat YoY/QoQ at Rs 1,081 billion.BHEL witnessed improvement in execution in Q2 FY21 while it expects normalisation by Q3 FY21.The company had floated a global expression of interest, inviting firms to partner with it and leverage its manufacturing capabilities and facilities.BHEL has received 70 EOI responses and has signed three memorandum of understandings in the field of transportation, marine defence and armour trucks but discussions are in preliminary stages and would take time to materialise..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nirmal Bang: BHEL Q1 Review - Weak Execution And Higher Than Expected Loss Amid Lockdown

Nirmal Bang: BHEL Q1 Review - Weak Execution And Higher Than Expected Loss Amid Lockdown

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