BHEL Q4 results: PAT declines 33% YoY to ₹611 cr owing to higher cost; dividend declared

BHEL’s Q4FY23 profit is up by a whopping 1,345.13% from ₹42.28 crore in December 2023 quarter.

The profitability is attributable to the owners of the company.

The bottom-line front of BHEL took a hit due to a sharp spike in total expenses despite an upsurge in power demand in the country.

In Q4 of FY23, BHEL’s total expenses stood at ₹7,474.47 crore — rising by 5.40% from ₹7,091.29 crore in Q4FY22 but sequentially the upside was at a much larger scale by 40.5% from the total expense of ₹5,320.84 crore recorded in Q3FY23.

Further, in the quarter, EBITDA stood at ₹986.2 crore, plunging by 14.4% from ₹1,151.9 crore in Q4FY22. Margins as well contracted to 12% in Q4 of FY23, as against 14.3% in Q4FY22.

Meanwhile, sales from operations stood at ₹7,819.37 crore in the quarter — rising from sales of ₹7,599.96 crore and ₹4,939.49 crore in Q4FY22 and Q3FY23 respectively.

Total revenue from operations picked up by 2.05% to ₹8,226.99 crore in Q4FY23, as against ₹8,061.68 crore in Q4 of FY22. In the preceding quarter, the revenue was at ₹5,263.38 crore — hence BHEL saw a huge growth of 56.31% sequentially in Q4FY23.

For the full year, BHEL’s PAT stood at ₹477.39 crore as against ₹446.03 crore in FY22. Revenue was at ₹23.364.94 crore in FY23 compared to ₹21,211.09 crore in FY22.

In a meeting held on Friday, BHEL’s board of directors recommended a final dividend of ₹0.40 per share having a face value of ₹2 each for FY23. In percentage terms, the dividend is 20%.

If the final dividend is approved in the ensuing annual general meeting, the company plans to pay the dividend benefits within 30 days from the date of the AGM.

On BSE, BHEL’s stock price closed at ₹78.93 crore down by 3.6%.

BHEL is engaged in the design, engineering, construction, testing, commissioning, and servicing of a wide range of products and services.

It needs to be noted that BHEL’s earnings come in contrast to its peers such as Siemens and Larsen & Toubro which witnessed higher profitability in the March 2023 quarter.

During the January to March 2023 period, BHEL bagged orders like renovation and modernisation of steam turbines at Ukai Thermal Power Station in Gujarat. Also, the start of FY24 has been on a healthy note with BHEL winning an order supply of 80 Vande Bharat trainsets from Indian Railways in consortium with Titagarh Wagons.

Updated: 26 May 2023, 07:41 PM IST