PL First Cut – BHEL Q2FY24

PL First Cut – BHEL Q2FY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

BHEL Q2FY24 Results First Cut – Dismal performance; Results below estimates on all front

Result summary

✳️On a standalone basis, revenue declined 1.5% YoY to Rs51.3bn (PLe ~Rs60.2bn and consensus estimate of Rs56.8bn), led by decline in Industry segment (down 8.6% YoY to Rs10.2bn), while Power segment reported a growth of 3% YoY to Rs39.3bn.

✳️Company reported EBITDA loss of Rs3.9bn, vs loss of Rs2.4bn in Q2FY23 (Ple EBITDA profit ~Rs783mn and consensus estimate EBITDA loss of Rs294mn) owing to lower revenue booking and higher other expenses (up28.7% YoY, provision number awaited).

✳️Reported Adj. loss of Rs2.3bn vs Profit of Rs103mn in Q2FY23 (PLe profit of Rs176mn and consensus estimated loss of Rs704mn).

✳️At the CMP, the stock is currently trading at 49.4x/28.1x FY24/25E. We have a ‘Reduce’ rating.