Views on BHEL 3QFY2014 results - Angel Broking

Views of Mr. Amit Patil (Research Analyst - Capital Goods, Angel Broking) on BHEL 3QFY2014 results:

Top-line below our expectations

"For 3QFY2014, BHEL's top-line performance was below our estimates. Top-line declined by 15.5% yoy to Rs. 8,635cr (compared to our estimate of Rs. 9,096cr) due to execution delays (partly on account of delay in payments by clients). Revenue from power segment declined by 11.9% yoy to Rs. 7,319cr while revenue from Industry segment declined by 28.5% yoy to Rs. 1,600cr. On the EBITDA front, the company's margin contracted by 457bp yoy to 11.4%. Consequently, Profit declined sharply by 41.2% yoy to Rs. 695cr (in-line with our estimate of Rs. 709cr). We maintain our Neutral recommendation on the stock."

Source : Equity Bulls

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