Bharat Heavy Electricals Ltd's Q3FY19 standalone net profit rises 23.1% yoy to Rs192cr: Misses Estimates

The company’s standalone revenue in the quarter stood at Rs7,336cr, up 10.1% yoy and 8.2% qoq.

Feb 05, 2019 02:02 IST India Infoline Research Team

Bharat Heavy Electricals Ltd Q3FY19

Standalone Results Q3FY19: (in Rs cr)

Q3FY19 YoY (%)
Revenue 7,336 10.1
EBITDA 219 [17.5]
EBITDA Margin (%) 3 [100]
Net Profit (adjusted) 192 23.1
***EBITDA margin change is bps

BHEL Ltd's results for Q3FY19 missed the consensus expectations on the EBITDA and net profit fronts. Revenue in the quarter rose 10.1% yoy to Rs7,336cr (expectation Rs7,258cr). EBITDA stood at Rs219cr, down 17.5% yoy against the estimates of Rs458cr. EBIDTA margin fell 100bps yoy to 3%. Net profit in the quarter ended December 2018 stood at Rs192cr (up 23.1% yoy) against an estimate of Rs257cr.
  • The company reported a sharp dip in EBITDA margins due to a sharp reduction in gross margins. BHEL's gross margins declined 879bps yoy in Q3FY19 to 37.6% due to a 17.6% yoy rise in raw material costs.
  • Other income for the quarter stood at Rs226cr, up 35.1% yoy.
  • Tax rate for 9MFY19 stood at 31% against a tax rate of 49% for FY18.
  • The Board has approved a dividend of Rs0.8 per share.

Technical View:

Bharat Heavy Electricals Ltd share price is currently at Rs58.50, down 6.35 points, or 9.79%, from its previous close of Rs64.85 on the BSE. The scrip opened at Rs65.60 and has touched a high and low of Rs65.60 and Rs56.25, respectively. So far, 4,49,04,484 (NSE+BSE) shares have been traded on the counter. The stock is currently trading above its 200-DMA.

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