A leading Indian power equipment manufacturing giant, renowned for its state-of-the-art engineering solutions and industrial infrastructure, has posted remarkable financial results that exceeded market expectations. The company’s latest quarterly report showcases impressive year-over-year growth in revenue and profit, along with notable margin expansion, signalling strong operational performance and market resilience.
Share Price Movement
The share price of BHEL Limited went up 4.7 percent to Rs. 196.49 per share on Wednesday, an increase from its previous close of Rs. 187.62 per share. The market capitalisation now stands at approximately Rs. 67,743 crore as of January 29, 2025.
Update on Financials
The financials for the nine months ended December 31, 2023, have been restated in line with the change in accounting policy by the company in FY 2023-24, with respect to factoring in the time value of money while calculating expected credit losses for contract assets. The impact or adjustment for Q3 was a reduction in other expenses by Rs 279.40 crore and an increase in tax expenses by Rs 70.32 crore.
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Financial Highlights
In Q3FY25, revenue stood at Rs. 7,277 crore, reflecting a 32.2% YoY increase from Rs. 5,504 crore in Q3FY24 and a 10.5% QoQ growth from Rs. 6,584 crore in Q2FY25. Profit for Q3FY25 was Rs. 135 crore, up 125% YoY from Rs. 60 crore and 27.4% QoQ from Rs. 106 crore.
EBITDA grew by 40.6% YoY to Rs 304.3 crore, up from Rs 216.5 crore in Q3 FY24. The EBITDA margin increased to 4.2%, from 3.9% in the same quarter last year.
Competitors
Major competitors of BHEL include Siemens Ltd., ABB India Ltd., Larsen & Toubro (L&T), Thermax, and CG Power & Industrial Solutions.
BHEL has a P/E of 143.15, which is higher than the industry P/E of 54.02.
Market Outlook
India’s economy saw strong growth in FY 2023-24, with GDP rising 8.2%. Energy, particularly coal, remains essential for continued growth, with coal-based power projects planned for the future. India also aims for 50% non-fossil fuel-based energy by 2030.
The government’s focus on modernisation and capacity expansion in sectors like defense, transportation, and oil & gas presents significant opportunities. The transmission sector is improving with large HVDC projects, and coal’s role in the chemical industry is increasing with innovations like coal gasification.
Written By Fazal Ul Vahab C H
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