- 22 May 2024
- ICICI Securities
BHEL REPORTED MUTED SET OF Q4FY24 RESULTS
BHEL - 203 Change: -2.00 (-0.98 %)News: BHEL reported muted set of Q4FY24 results. Revenue grew marginally by 0.4% to Ra 7884 crore. The company with eased strong order inflows to the tune of Rs 78000 crore in FY24 backed by revival in thermal power ordering. Power segment inflows stood at Ra 55000 crore. The order backlog stood at Rs 132000 crore. The company disappointed on EBIDTA margins front as the same declined by 400 bps to 8.3% in Q4FY24. Consequently PAT declined by 30% YoY to Rs 484 crore.
Views: We believe the revival in thermal power market was much needed for BHEL and the ordering opportunity of 10Gw per year will provide reasonable visibility to the company. But we are wary of the legacy orders of Rs 50000 crore which are low margin and same will be executed in FY25. We will also be monitorable of magnitude of margin recovery from FY26 onwards and management effort to diversify from the power segment business over the medium term.
Impact: Neutral