InvestorQ : What is your quick view on the quarterly results of Powergrid Corporation and BHEL for Q2 ending Sep-21?
sarah Leo made post

What is your quick view on the quarterly results of Powergrid Corporation and BHEL for Q2 ending Sep-21?

Answer
image
Rashi Mehra answered.
4 weeks ago
Follow

Let me start with Power Grid first. Revenues were up 7.74% in the Sep-21 quarter at Rs.10,267 crore. There was visible growth across power transmission business as well as the much smaller consultancy vertical. However, the revenues from the telecom vertical was stagnant yoy. Transmission vertical EBIT was lower due to higher manpower and depreciation costs.

Net profits were up 9.12% at Rs.3,376 crore. Profit growth could have been better but for the Rs.339 crore debit due to regulatory deferral account adjustment. Profits were sharply lower by -44% sequentially, but that was more due to an exceptional gain of Rs.3,014 crore in Jun-21 quarter from monetization of five of its subsidiaries. Net profit margin have traditionally been high and stood robust at 32.89% for the Sep-21 quarter.

Let me now turn to BHEL. It reported 38.3% rise in total revenues for Sep-21 quarter at Rs.5,112 crore. This was largely on the back of revival in power sector demand and capital investment revival. Revenues from the power and industrial engineering sector were higher yoy. During the quarter, the debtors turnover increased from 1.73 to 1.99 times and inventory turnover rose to 2.39 times, indicating better working capital leverage.

However, BHEL continues to report net losses, although the losses had substantially narrowed on a yoy and sequential basis by nearly 90%. This was largely on the back of the turnaround in the power vertical that moved from Rs-372 crore negative EBIT to Rs.231 crore positive EBIT. Industrial engineering also witnessed turnaround in EBIT.

0 Views