 "BHEL Q4 results: Net profit drops 26% to Rs 484 crore, revenue flat")
State-owned Bharat Heavy Electricals Limited (BHEL) on Tuesday reported a consolidated net profit of Rs 489.62 crore for the January-March quarter (Q4) in financial year 2023-24 (FY24). This was a 25.6 per cent drop in net profit compared to Rs 658.02 crore reported during the same period last year, attributed to higher expenses by the firm. Sequentially, the firm's net profit grew sevenfold from Rs 60.31 crore.
Consolidated revenue from operations grew marginally by 0.4 per cent to Rs 8,260.25 crore year-on-year (Y-o-Y) from Rs 8,226.99 crore. Sequentially, revenue grew 50 per cent from Rs 5,503.81 crore.
Total expenses of BHEL, which makes power and industrial equipment, grew by 5 per cent Y-o-Y to Rs 7,794.11 crore in the fourth quarter from Rs 7,411.64 crore. Expenses, however, surged 40.75 per cent in Q4 compared to Rs 5,537.47 crore in the last quarter.
BHEL accounts for 53 per cent of the country's total installed power generation capacity. Competitor Tata Power reported an 11 per cent increase at Rs 1,046 crore in consolidated net profit for the same period. Meanwhile, Siemens reported a 74 per cent rise in profit after tax (PAT) at Rs 896 crore on higher revenues in Q4.
BHEL ended FY24 with a 56.85 per cent drop in PAT at Rs 282.22 crore. The company had reported Rs 654.12 crore at the end of FY23. Revenue from operations for the entire financial year grew 2.3 per cent Y-o-Y to Rs 23,892.78 crore compared to Rs 23,364.94 crore. Meanwhile, company expenses rose 4.6 per cent to Rs 24,260.37 crore Y-o-Y from Rs 23,193.98 crore.
The company board recommended a dividend of 25 paise per equity share of Rs 2 face value for FY24. The final dividend, upon approval, will be paid within 30 days from the date of the Annual General Meeting (AGM).
Shares of BHEL closed trading at Rs 319.2 on the BSE, ahead of the company's fourth quarter earnings report on Tuesday.