PAT level Power sales (70% of sales) declined 18% YoY to INR42b, while Industrial sales (30% to sales) grew strongly by 24% YoY to INR18b. PBIT margin expanded 200bp YoY to 10.3% in Power but shrank 180bp YoY to 3.0% in Industrial segment. BHEL continues struggling on account of (a) the weak ordering environment in the power sector, (b) high receivables of INR380b and (c) high employee cost at ~21% of sales. We maintain rating on the stock with a TP of INR52 (15x FY21E EPS, in line with the 10-year average P/E). PBIT margin expanded by 200bp YoY to 10.3% in Power but shrank by 180bp YoY BHEL continues struggling on account of (a) the weak ordering environment in the power sector, (b) high receivables of INR380b and (c) high employee cost at ~21% of sales. We maintain our earnings estimates and a TP of INR52 (15x FY21E EPS, in line with the 10-year average P/E).