Registering a modest 10% year-on-year growth in the topline for the first quarter FY12, BHEL's revenue growth has fallen way short of expectations, despite a healthy order book. The YoY sales growth for Q1 FY12 is, in fact, the lowest since Q1 FY05. Logistical issues are being cited as one of the key reasons for this shortfall in revenue.
The closure of JNPT for facility upgradation for more than a month, resulting in equipment export and import delays, appears to have impacted the Q1 revenues by about Rs 600-700 crore.
Apart from revenue growth, a slump in freshorder inflows during the quarter has also raised concerns among investors leading to a sharp dip in the stock price of the company, which is currently trading below Rs 1,900 per share.
The company has an order backlog of Rs 1,59,600 crore as on June 30, 2011 vis-a-vis its order book position of over 1,64,000 a quarter ago. While even with the current backlog, the company is comfortably placed having revenue visibility for at least three years. Further slippages in the order inflows can significantly impact its performance in the near future.
more at:
http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/bhel-rising-costs-to-hurt-fresh-order-inflows/articleshow/9390348.cms
Wednesday, July 27, 2011
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