InvestorQ : How did BHEL managed to turn around to profits in the fourth quarter?
Anu Biswas made post

How did BHEL managed to turn around to profits in the fourth quarter?

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Ria Jain answered.
2 months ago
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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%.

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