BHEL shares surge 10% as Q4 profit skyrockets 155%
What's the story
Shares of Bharat Heavy Electricals Limited (BHEL) surged by as much as 10% on Monday, following the company's strong operational performance in its fourth quarter results. The PSU's earnings before interest, tax, depreciation and amortization (EBITDA) more than doubled from last year to ₹1,754 crore from ₹832 crore. This figure is also significantly higher than the CNBC-TV18 poll estimate of ₹831 crore.
Financial performance
EBITDA margin expands by 500 basis points
The EBITDA margin for the quarter expanded by 500 basis points to 14.2% from 9.2% last year, exceeding the CNBC-TV18 poll estimate of 10.1%. BHEL's revenue also witnessed a massive 37% growth from last year, reaching ₹12,310 crore. This number is in line with the CNBC-TV18 poll estimate of ₹12,398.3 crore and indicates strong execution in its power segment during this period.
Profit surge
Net profit more than doubles from last year
BHEL's net profit for the quarter also more than doubled to ₹1,283 crore from ₹504 crore last year. This figure is higher than the CNBC-TV18 poll estimate of ₹826 crore and shows a huge jump in profitability for the company during this period. The strong performance can be attributed to robust execution in its power segment, which has led to sharp improvements in margins as well. The stock has surged 33% in the year so far.