BHEL shares plunge ahead of Q4 results, dividend announcement; here's why

Shares of Bharat Heavy Electricals Ltd (BHEL) were trading 4 per cent lower in Friday's trade as a host of brokerages see a sharp fall in its profitability for the March quarter. The state-run company is scheduled to report its quarter results and declare final dividend for FY23, if any, later in the day.

BHEL shares fell 4.23 per cent to hit a low of Rs 78.40 on BSE. The stock is up 57 per cent in the last one year.

Antique Stock Broking expects the company to report a PAT at Rs 128.30 crore for the quarter, down 54.8 per cent YoY. Sequentially, profit may rise 8.4 per cent, the brokerage said. It sees revenue for the quarter at Rs 9,146.2 crore, up 13.5 per cent YoY. It sees Ebitda at Rs 1,424.60 crore, up 23.7 per cent YoY.

Analysts noted the year-ago quarter included reversal of provisions for BHEL, which had resulted in higher profit.

Prabhudas Lilladher expects the company to report profit at Rs 210.30 crore, down 76.90 per cent on a yearly basis. It sees revenue for BHEL at Rs 9,213.40 crore, up 14.3 per cent YoY. Ebitda, Prabhudas Lilladher said is seen at Rs 355.30 crore, down 69.2 per cent YoY.

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"For BHEL, we expect Ebitda to improve on the back of right back of provisioning during the quarter. Commentary on the order inflow visibility, mainly Vande Bharat, thermal power; margin improvement and account receivable would be the key, said ICICI Securities, keeping BHEL among its top picks from the sector," ICICI Securities.

Analysts said revenue growth will be led by pickup in execution. Management commentary on execution pace, working capital situation, order pipeline, diversification into non-power segment, margins will be key monitorables.

For FY23, Nuvama Institutional Equities sees revenue at 24,600 crore with a Ebitda margin of 3.1 per cent. EPS is seen at Rs 1.10 with a return on Equity at 1.5 per cent.

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