PL First Cut – BHEL Q1FY24

PL First Cut – BHEL Q1FY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

BHEL Q1FY24 Results First Cut – Dismal performance; Results below estimates on all front

Result summary

✳️On a standalone basis, revenue grew 7.1% YoY to Rs50bn (PLe ~Rs53.8bn and consensus estimate of Rs51.7bn), led by growth in Power segment (up 8.3% YoY to Rs38.2bn) and Industry segment (up 8.2% YoY to Rs10bn).

✳️Company reported EBITDA loss of Rs3.6bn, vs loss of Rs1.7bn in Q1FY23 (Ple EBITDA profit ~Rs1.3bn and consensus estimate EBITDA profit of Rs155mn) owing to higher other expenses (up106% YoY, provision number awaited).

✳️Reported Adj. loss of Rs3.5bn vs adj. loss of Rs1.9bn in Q1FY23, (PLe profit of Rs464mn and consensus estimated loss of Rs555mn).

✳️At the CMP, the stock is currently trading at 39x/22.2x FY24/25E. We have a Reduce rating on the stock with TP of Rs67.