How did BHEL managed to turn around to profits in the fourth quarter?
Answer
Answer
India’s Navaratna PSU, BHEL, had dipped into losses in the past. It was a turnaround in the fourth quarter with increase of 12.43% in sales revenues for Q4FY22. FY22 full year revenues were up 22.5% at Rs21,211 crore. The power equipment business saw revenues grow 24% at Rs5,395 crore while industrial equipment revenues were lower by -15% at Rs1,665 crore. BHEL announced dividends of Rs0.40 per share for the year FY22.
BHEL Ltd
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 8,061.68
₹ 7,170.47
12.43%
₹ 5,135.90
56.97%
Net Profit (Rs cr)
₹ 912.47
₹ -1,034.82
N.A.
₹ 27.02
3277.02%
Diluted EPS (Rs)
₹ 2.62
₹ -2.97
₹ 0.08
Net Margins
11.32%
-14.43%
0.53%
Net profits for Q4FY22 turned around from a net loss of Rs-1,035 crore to a net profit of Rs912 crore. During the quarter, there was a sharp fall in the other expenses which boosted profits of BHEL. The industrial and power verticals saw a sharp turnaround in EBIT from losses to profits on more stringent cost controls. Net margins were 11.32% in Q4FY22 compared to 0.53% in Q3FY22. Operating margins stood at a robust 15.39%.