Bharat Heavy Electricals Ltd. share price target

Revenue fell by 41.11% to Rs. 5790.08 Cr in Q1FY19 when compared to the previous quarter. Bharat Heavy Electricals Ltd Q1FY19 results Comment

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 5935.5 crore, up 7.8% vs. our estimate of | 6114.3 crore. On the segmental front, power segment revenues grew 6.9% to | 4636.2 crore YoY whereas industrial segment revenues continued to decline 9.2% to | 1153.9 crore. The order backlog was at | 117000 crore against | 118000 crore in Q4FY18 EBITDA came in at | 287.2 crore (vs. our estimate of | 39.9 crore) vs. a loss of | 88.3 crore in Q1FY18, on account of lower raw material to...

ICICI Securities Ltd | Retail Equity Research Bhel reported a mixed set of Q4FY18 numbers. Key highlights were green shoots in operating performance and strong order inflows Revenues came in at | 10148 crore up 4.7% (I-direct estimate of | 10051 crore). On the segmental front, power segment revenues grew 2.5% to | 8308 crore on a YoY basis whereas industrial segment revenues declined 13.9% to | 1520 crore In FY18, order inflow was at | 40932 crore, significantly up 74% YoY,...

Q3FY18 revenue grew only by 5% YoY to Rs6,626cr due to lower industrial revenue growth. Power segment revenues grew by 5% YoY whereas industrial segment revenues declined by 17% YoY. Order backlog increased by 4% yoy to Rs1tn supported by 131% increase in 9MFY18 order inflow. Gross margin improved by 386bps YoY to 41.2%, other expenses increased by 52% YoY, restricting EBITDA margin expansion to 100bps YoY at 4.5% BHEL is focusing on ramping up its executable order book (Rs810bn) to achieve better operating leverage. Orders worth 5GW are non-moving, award of L1 contracts continues to get delayed, and tender pipeline remains modest while the competition remains severe....

Q3 order inflow at ~Rs 120 bn was up 7x YoY and order backlog at Rs 1,022 bn was up 4%. Executable order backlog improved to Rs 810 bn (up 48% from Rs 548 bn YoY) on clearance of Yadadri project in Oct. Further, BHEL has won orders worth Rs 41 bn so far in Q4.

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...

ICICI Securities Ltd | Retail Equity Research Bhel reported a decent set of Q3FY18 results. The key reason for the same was better execution, EBITDA margins and no one-offs Revenues came in at | 6626.4 crore, up 4.8% (I-direct estimate of | 6389 crore). On the segmental front, power segment revenues came in at | 5356 crore, up 5% YoY whereas industrial segment revenues came in at | 1138 crore, down 17% YoY The company secured orders to the tune of | 12100 crore coupled...

Of Rs1.02trn order backlog, the executable portion moves to Rs810bn. Further, beyond L1 of Rs180bn, the pipeline for fresh order is weak, however. On 33GW of FGD orders, for some, NTPC has finalized the terms and conditions; thereby, tendering results could be out. Adding to that, 5GW orders stranded. Thereby, the focus shifts on: (a) prospects...

Revenue grew by 16.27% to Rs. 6256.22 Cr in Q2FY18 when compared to the previous quarter Revenue grew by 16.27% to Rs. 6256.22 Cr in Q2FY18 when compared to the previous quarter

With slow-moving coming back on fast track, FY19 could be the year of provision write-backs and stronger revenue recognition. We raise our FY19 Revenue/EBITDA by 3%/2%. With a revised TP of Rs94 (earlier TP of 87), we maintain HOLD. Pipeline beyond L1 looks weak: Indeed, the focus shifts on the progress towards: (1) 3x800 MW Pathrathu project of Rs120bn; (2) 1x6660 MW Panki project of Rs30bn; (3) 1x660 MW Bhusawal project of Rs30bn; and (4) 1x800 MW Udangudi project of Rs40bn; put together, Rs260bn of pipeline. Adding to that, BHEL identifies 33GW of FGD. The ordering pipeline in FY19 could be pegged at 8-10 GW. However, industry capacity...