Other Income lifts BHEL’s Q4 Net Profits; posts yearly Loss

Government of India promoted Power Company Bharat Heavy Electricals (BHEL) has posted exceptional income from operations and a recovery from losses it made in the previous quarter. The stock of BHEL remained subdued about the results and closed at Rs 127.70 with 0.7 per cent loss ahead of the results. The board also recommended a final dividend of Rs 0.4 per share on the face value of Rs 2.00 per share.

Company’s standalone Total Income from Operations for Q4FY16 has witnessed almost a twofold rise of 87.9 per cent at Rs 10004.77 crore as against Rs 5325.57 crore. Considering Segment wise revenues: Power segment revenues have risen from Rs 4402.14 crore to Rs 8101.18 crore. Industry segment revenues have risen from Rs 1150.78 to Rs 2238.47 crores.

EBITDA stands at Rs 363.81 crore as against a loss in earnings at Rs 1638.74 crore in the last quarter. Company has witnessed a rise in direct costs by 37.5 per cent.

Company’s other income has risen by142.7 per cent to Rs 413.87 crore as compared to RS 170.56 crore in the last quarter. Thereby company has seen a net profit of Rs 359.58 crore as against a loss of 1101.99 crore in the last quarter.

The Year on Year (YOY) results have dropped, wherein Company’s total income from operations have declined by 20.8 per cent from Rs 12368.43 crore in the same quarter last year. EBITDA of company has dropped 78.4 per cent from Rs 1681.79 crore. Net profits too have fallen by 59.5 per cent from Rs 888.35 crore during the same quarter last year.

On a yearly basis BHEL has been posting a consistent fall in its revenues since FY 2013. Its March ended 2016 consolidated total income from operations stand at Rs 26350.6 crore  as against Rs 30788.59 crore for the year ended March 2015, a decrease of 14.4 per cent. Similarly the net profits have been diminishing every year since FY 2013 and thereby BHEL has posted a net loss of Rs 895.93 crores. Company has increased its debt again.

BHEL is an engineering and manufacturing company. BHEL deals in end-to-end systems, products and engineering, erection and commissioning services for thermal power plants surrounded by steam turbines, generators, boilers and matching auxiliaries with up to 1,000 megawatt ratings and has supplied sets of 660/700/800 megawatt.

Recently BHEL has commissioned the first 800 megawatts super critical thermal unit in Karnataka.