India's BHEL posts Q2 profit on higher power equipment sales

Bharat Heavy Electricals

28/10/2024 09:59

Oct 28 (Reuters) - India's state-owned Bharat Heavy
Electricals  BHEL.NS  reported a second-quarter profit on
Monday, as higher sale of power products offset an increase in
expenses, sending its shares 6.3% higher.
    The power and industrial equipment manufacturer reported a
net profit of 966.7 million rupees ($11.5 million) for the
quarter ended Sept. 30 against a loss of 583 million rupees a
year ago.
    BHEL, which accounts for 55% of the country's total
installed power generation capacity, said its revenue from
operations jumped 28.5% to 65.84 billion rupees in the quarter.
    Revenue from the power segment, which contributes to more
than 75% of BHEL's total revenue, rose 23.5% to 50.28 billion
rupees.  
    Its expenses rose 19% to 65.71 billion rupees, driven by an
18% rise in the cost of raw materials and services.
    The company revised its year-ago adjusted expenses lower to
55.19 billion rupees from 57.53 billion rupees, including an
increase in deferred tax and a reduction in provisions and
write-offs, according to an exchange filing.
    With limited competition in the power equipment
manufacturing space, BHEL is expected to have a healthy order
pipeline, according to a note by Antique Stock Broking. 
    Shares of the company jumped as much as 10% after results
before trimming gains to trade 6.3% higher at 230.6 rupees per
share. BHEL's shares have risen around 19% year-to-date. 
    Rivals Tata Power  TTPW.NS  and Siemens  SIEM.NS  have yet
to report their quarterly results.

    



($1 = 84.0510 Indian rupees)

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))