Bharat Heavy Electricals (BHEL)'s 2QFY21 earnings were disappointing as revenue came in 27% below our estimates. Higher fixed cost dented operating performance, with operating level loss attributable to underabsorption of costs. The company is yet to show any significant improvement in pending receivables, with total debtors at INR349b in 1HFY21 (v/s ~INR360b at end-FY20). In spite of the company's ongoing efforts, we expect the receivables position to remain elevated in the near future. Order inflows remained weak, with 50% YoY decline in 2QFY21. We now expect BHEL to report operating-level loss in FY21E. While orders...