BHEL net profit seen up 11% at Rs 3116cr, order book eyed

NEW DELHI: Bharat Heavy Electrical Ltd (BHEL) is expected to report an 11 percent YoY increase in net profit at Rs 3,116 crore against Rs 2,798 crore in the year-ago period, according to ET Now estimates.

Net sales are seen at Rs 20,460 crore, or a 14 percent YoY increase compared to Rs 17,921 crore in the corresponding period a year ago.

Highlights

Net sales seen at Rs 20,460 crore vs Rs 17,921 crore, up 14 percent YoY
Net profit seen at Rs 3,116 crore vs Rs 2,798 crore, up 11 percent YoY
EBITDA seen at Rs 4,444 crore vs Rs 4,253 crore, up 5 percent YoY
Margins seen at 21.7 percent vs 23.7 percent

Key Factors

Execution of orderbook to drive revenues
Revenues driven by expanded capacities
Power vertical to show muted growth
Industrial segment to witness degrowth
NTPC bulk orders not to be part of Q4 results
Higher employee cost, materical costs to dent margins
Lower other income, high depriciation to hit profits

Order Inflow

FY12 provisional results indicates Rs 22,096 crore
BHEL bagged orders worth Rs 15,000 crore in 9MFY12 (net order cancellations)
FY12 guidance given was Rs 66,000 crore