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  • BHEL
  • June 08,2019  11:46
  • Bharat Heavy Electricals has registered 1% growth in its sales for the quarter ended March 2019 to Rs 10297.16 crore. However an 80 bps expansion in operating profit margin resulted in 8% growth in operating profit to Rs 1395.23 crore. With other income stand lower by 12% to Rs 120.87 crore, the PBIDT was up by 6% to Rs 1516.10 crore. Even as interest costs (as % of OP) stand higher, the PBT was up by 13% to Rs 1285.43 crore, gained largely by lower depreciation (as % of OP). With taxation stand lower by 12% to Rs 602.73 crore, the growth at PAT jumped up by 49% to Rs 682.70 crore. Eventually the net profit (total comprehensive income) was up by 6% to Rs 566.45 crore hit by higher other comprehensive expense which was Rs 116.25 crore, a swing of Rs 191.55 crore from an income of Rs 75.30 crore in the corresponding previous period.
    • Operating income excluding other operating income was flat (up 0%) to Rs 9836.50 crore. But value of production was up by 4% to Rs 9793.70 crore. Sale for the quarter and corresponding previous period was 100.4% and 104.4% of its respective value of production. Sales higher than value of production reflects liquidation of earlier period inventory.
    • Flat growth in revenue is largely due to growth in revenue of industry segment. Segment revenue of power was down by modest 3% to Rs 8103.38 crore. That of industry was up by strong 14% to Rs 1733.12 crore.
    • PBIT was up by 61% to Rs 1559.99 crore driven by strong growth in segment profit of both the segments. Despite marginal lower sales, the segment profit of power was up by 44% (to Rs 1306.58 crore) gained by sharp 520 bps expansion in segment margin to 16.1%. And the segment profit of Industry was up by 343% to Rs 253.41 crore driven largely by higher sales and 1090 bps expansion in segment margin to 14.6%.
    • OPM expanded by 80 bps to 13.5% and that was largely as the impact of higher material cost was more than offset by lower staff and OE. Material cost as proportion to sales net of stocks was up by 840 bps to 56.5%. But the staff cost was lower by 10 bps to 19.3%. And the OE was down by 880 bps to 10.5%.
    • Other income was down by 12% to Rs 120.87 crore. The interest cost was up by 33% (to Rs 96.44 crore) and the depreciation was down by 38% (to Rs 134.23 crore). Thus, the PBT was up by 13% to Rs 1285.43 crore.
    • EO income for the quarter and corresponding previous period was nil. The taxation was down by 38% to Rs 134.23 crore. Thus gained by lower tax provision, the growth at PAT was 49% (to Rs 682.70 crore).

    Yearly performance

    Standalone sales were higher by 5% to Rs 30348.95 crore. Further with OPM expand by 40 bps to 7.1%, the operating profit leaped by 11% to Rs 2141.96 crore. After accounting for lower (down 2%) other income, higher interest (as % of OP) and lower depreciation (as % of OP), the PBT was up by 30% to Rs 2057.86 crore. Taxation was up by 8% to Rs 842.47 crore and thus the growth at PAT was up by 51% to Rs 1215.39 crore. PPA was nil for the quarter as well as corresponding previous period. Thus the PAT after PPA was up by 51% to Rs 1215.39 crore. The other comprehensive expense was Rs 119.18 crore compared to an income of Rs 83.33 crore in corresponding previous period. And thus the total comprehensive income was up by 23% to Rs 1096.21 crore. The impact on depreciation due to review and revision in the estimated useful life of certain item of PPE in FY 2018-19 is reduction of Rs 201.42 crore.

    Consolidated sales was up by 5% to Rs 30367.65 crore and the operating profit was up by 9% to Rs 2137.93 crore gained by higher sales and 20 bps expansion in OPM. Eventually the net profit (total comprehensive income attributable to owner) was up by 70% to Rs 892.69 crore.

    Other developments

    The Company has completed the buyback of 189336645 shares in January 2019. Post Buy back, the Share Capital of the Company stands at Rs 696.41 crore.

    To pay a final dividend of Rs 1.20 per share of Rs 2 face value for 2018-19 and this is in addition to interim dividend of Rs. 0.80 per share (Face value Rs 2 per share) already paid.

    Bharat Heavy Electricals: Results

     

    1903 (3)1803 (3)Var. (%)1903 (12)1803 (12)Var.(%)
    Sales10297.1610213.04130348.9528925.715
    OPM (%)13.512.77.16.7
    OP1395.231292.4282141.961931.6611
    Other inc.120.87137.10-12677.64694.28-2
    PBIDT1516.101429.5262819.602625.947
    Interest96.4472.5833286.93254.5513
    PBDT1419.661356.9452532.672371.397
    Dep.134.23217.07-38474.81786.40-40
    PBT1285.431139.87132057.861584.9930
    Provn for taxation602.73682.70-12842.47778.398
    PAT682.70457.17491215.39806.6051
    PPA0.000.000.000.00
    Net Profit682.70457.17491215.39806.6051
    Other Comprehensive Income-116.2575.30PL-119.1883.33PL
    Total Comprehensive Income566.45532.4761096.21889.9323
    EPS (Rs)*##3.52.3
    * EPS is on current equity (post buyback) of Rs 696.41 crore, Face value of Rs 2
    # EPS is not annualised due to seasonality of business
    Figures in Rs crore
    Source: Capitaline Corporate Database

    Bharat Heavy Electricals: Segment Results

     

    Sales1903 (3)1803 (3)Var. (%)% to total1903 (12)1803 (12)Var.(%)% to total
    Power 8103.388312.29-38223404.9622881.04280
    Industry 1733.121520.5314185944.254969.402020
    Total9836.509832.82010029349.2127850.445100
    PBIT
    Power 1306.58909.4244842812.182792.14187
    Industry 253.4157.1534316437.21179.5514413
    PBT before tax and interest1559.99966.57611003249.392971.699100
    Less: Interest96.4472.58286.93254.55
    Add: Other unallocable income-178.12245.88-904.60-1132.15
    PBT1285.431139.872057.861584.99
    Segment Assets
    Power 45185.7140812.18117045185.7140812.181170
    Industry 9372.158522.9810159372.158522.981015
    Unallocated9858.1514382.92-31159858.1514382.92-3115
    Total CE64416.0163718.0864416.0163718.08
    Segment Liability
    Power 24823.9624541.3017524823.9624541.30175
    Industry 5251.544799.219165251.544799.21916
    Unallocated2940.651776.496692940.651776.49669
    Total CE33016.1531117.0033016.1531117.00

    Figures in Rs crore
    Var. (%) exceeding 999 has been truncated to 999
    LP: Loss to Profit; PL: Profit to Loss

     Bharat Heavy Electricals: Consolidated Results

     

    1903 (12)1803 (12)Var.(%)
    Sales30367.6528940.425
    OPM (%)7.06.8
    OP2137.931968.889
    Other inc.661.52679.24-3
    PBIDT2799.452648.126
    Interest288.01255.1613
    PBDT2511.442392.965
    Dep.475.74787.33-40
    PBT before JV profit/loss2035.701605.6327
    Share of profit from JV/ associate-185.60-390.76999
    PBT 1850.101214.8752
    EO Exp0.000.00
    PBT1850.101214.8752
    Provn for taxation840.94776.688
    PAT1009.16438.19130
    PPA0.000.00
    PAT after PPA1009.16438.19130
    Other Comprehensive Income (net of tax)-119.1583.47PL
    Total Comprehensive income net of tax890.01521.6671
    Minority interest-2.68-2.97-10
    Net profit892.69524.6370
    EPS (Rs)*2.91.2
    * EPS is on current equity (post bonus) of Rs 696.41 crore, Face value of Rs 2
    # EPS is not annualised due to seasonality of business
    Figures in Rs crore
    Source: Capitaline Corporate Database

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