Bharat Heavy Electricals Ltd (BHEL), whose shares are up 61 per cent year-to-date, is expected to report a narrowing of losses sequentially in the September quarter. This would be against a profit in the year-ago quarter. Sales is seen rising in single digits for the state-run engineering firm, analyst estimates suggest.
Kotak Institutional Equities expects the PSU firm to report a loss Rs 271.40 crore against a loss of Rs 351.70 crore in the June and a profit of Rs 10.3 crore in the same quarter last year. Net sales is expected to rise 7.1 per cent YoY to Rs 5,571 crore in the September quarter against Rs 5,202.60 crore in the corresponding quarter last year, driven by the industrial segment. The domestic brokerage has assumed a marginal growth in power segment revenues.
"We expect Ebitda to remain negative on weak executable backlog. We expect employee cost to remain
elevated. We also expect other expenses to move up. The YoY base had the benefit of provision writeback in other expenses of Rs 200 crore," it noted.
Nuvama Institutional Equities in its results preview said given the viewpoint of energy security overriding energy transition, thermal ordering is on the cusp of revival in the near-term as CEA plans 30-35 GW of new thermal ordering over FY24-28E.
"Recent Dibang (hydro), Talcher, Mahan Energen and Lara order wins provides confidence as BHEL plans to foray its presence into ex-thermal over time -SCRs, mobility (trainsets + locos), defence, coal gasification, transmission EPC & equipment etc," it said.
The domestic brokerage expects BHEL to log a loss of Rs 258.40 crore for the quarter. It sees sales for BHEL rising 10 per cent YoY to Rs 5,745.80 crore. Prabhudas Lilladher is anticipating profit at Rs 17.60 crore. It is expecting sales to rise 20.4 per cent YoY to Rs 6,022.60 crore.
Also read: Tata Power shares in focus ahead of Q2 results. Here are brokerage estimates