BHEL Q1 net halves to Rs 193.5 cr on lower revenue, EBITDA

Bharat Heavy Electricals (BHEL) missed street expectations with the first quarter (April-June) net profit falling 58.4 percent year-on-year to Rs 193.5 crore due to lower revenues and weak operational performance. Profit in the year-ago period was Rs 465.4 crore. In Q1FY14, other income included forex gain of Rs 325 crore, which boosted profitability during that quarter. Analysts had expected the company to report profit of Rs 350 crore on revenue of Rs 6,135 crore for the quarter, according to CNBC-TV18 poll estimates. Net sales dropped 20.2 percent to Rs 5,068 crore in the quarter ended June 2014 from Rs 6,353 crore in the corresponding quarter of last fiscal on account of lower revenue from both power as well as industry segments. Power revenue went down by 23 percent on yearly basis to Rs 4,144.2 crore with earnings before interest and tax (EBIT) falling 30.8 percent to Rs 525 crore while revenue from industry segment dipped 12.3 percent to Rs 1,133 crore with EBIT declining by 70 percent to Rs 39.5 crore, said the company in its filing. Operating profit (EBITDA) of the power equipment maker slipped 44.2 percent year-on-year to Rs 217 crore and margin fell 180 basis points to 4.2 percent in April-June quarter, which both were lower than analysts' estimates of Rs 387 crore and 6.3 percent, respectively. Other income during the quarter was down by 35.4 percent to Rs 348 crore from Rs 538.5 crore while total expenses declined to Rs 5,209.6 crore from Rs 6,300.34 crore during the same period. Tax expenses were down by 74.2 percent Y-o-Y to Rs 52.4 crore but finance cost jumped to Rs 47.3 crore from Rs 27.8 crore and depreciation cost increased to Rs 272.5 crore from Rs 230.8 crore (due to change in depreciation method). The scrip of BHEL, which announced earnings post market hours, rose 0.79 percent to close at Rs 223.70 on the Bombay Stock Exchange. Read more at: http://www.moneycontrol.com/news/results/bhel-q1-net-halves-to-rs-1935-crlower-revenue-ebitda_1153426.html?utm_source=ref_article ref: http://www.moneycontrol.com/news/results/bhel-q1-net-halves-to-rs-1935-crlower-revenue-ebitda_1153426.html