BHEL trips on concerns about Q4 results

Bharat Heavy Electricals declined 4.02% to Rs 1778 at 12:47 IST on BSE after reporting provisional turnover of Rs 21,608 crore with 15.31% growth and net profit of Rs 2,815 crore with 16.56% growth in the financial year 2007-08 over 2006-07.

The stock hit a high of Rs 1888.20 and a low of Rs 1702 so far during the day.

The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.

The current price of Rs 1778 discounts its Q3 December 2007 annualized EPS of Rs 63.07, by a PE multiple of 28.19.

The 16.56% growth in Bharat Heavy Electricals (Bhel)'s net profit in the year ended March 2008 over the year ended March 2007 as per the provisional results, was muted in the backdrop of a 38% growth in net profit achieved in the nine months ended December 2007 over nine months ended December 2006, raising concerns that the Q4 March 2008 results would be bad.

On 17 March 2008, Bharat Heavy Electricals (Bhel) secured orders worth around Rs 2,030 crore for an upcoming 1,000-megawatt thermal power project.

On 29 February 2008, the company received an order worth Rs 1893 crore from GSPC Pipavav Power Co in western India for a 700 megawatt plant.

On 14 February 2008, Bhel bagged an order worth Rs 200 crore from Oil & Natural Gas Corporation for supplying oil field equipment.

On 8 February 2007, the company bagged an order worth Rs 3390 crore for setting up two units of 500 megawatt each in a thermal power station in northern Uttar Pradesh.

Bhel’s net profit rose 15.6% to Rs 771.90 crore on 14.4% growth in net sales to Rs 4964.14 crore in Q3 December 2007 over Q3 December 2006.

Bhel is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.