Subdued performance: BHEL reported revenues at Rs66bn (+5% yoy) below our expectations. While the gross margins increased by 386 bps yoy to 41.2%, the EBITDAM increased by 92 bps yoy to 4.5%. Although EBIDTA increased by 32% yoy to Rs2.95bn, the APAT surged by 64% yoy to Rs1.53bn aided by lower depreciation charge. Revenues in the power segment increased by 5% yoy to Rs54bn while it declined in the industry segment by 17% yoy to Rs11bn. EBITM in the power segment improved by 289bps to 14.5%.The industry segment reported EBITM of 3.6% (loss in 3QFY17). Other income remained flattish at Rs1.38bn, though declined by 72% qoq on account of losses related...