Five factors to watch out from BHEL earnings

NEW DELHI: Bharat Heavy Electrical Ltd ( BHEL) will be announcing its quarterly results on Thursday. According to an ET Now poll, the company is likely to post a net profit of Rs 841 crore for the quarter ended June 2012, up 3 per cent, against a net profit of Rs 816 crore year-on-year (YoY).

Net Sales is expected to have grown to Rs 7,911 crore, up 11 per cent, against Rs 7,125 crore (y-o-y).

Earnings before interest, taxes, depreciation and amortization or (EBITDA), the operations profitability measure of the company is expected to rise by 6 per cent to Rs 1,176 crore as against Rs 1,113 crore in the year-ago-period.

Factors to watch:

1) Order book to drive revenues of company 2) BHEL has announced orders worth Rs 2500 cr in Q1 3) Need clarity if any part of NTPC bulk tender order booked 4) Margin decline on execution of low margin projects 5) BHEL sees 14 - 15 GW of order inflow in FY13