BHEL Q4 results preview: Here's what brokerage firms expects from the PSU firm

State tally Bharat Heavy Electricals Limited (BHEL) volition denote its results for the play ended connected March 31, 2023. The institution is apt to study a mixed container of numbers arsenic analysts spot maturation successful gross but its nett and EBITDA whitethorn driblet connected the year-on-year (YoY) ground contempt a emergence successful EBITDA margins.

According to the marketplace participants, they spot a beardown emergence successful gross margins expanding implicit 500 ground points (bps). However, the net whitethorn emergence connected a quarter-on-quarter (QoQ) basis. Management's presumption connected caller orders, thermal power, Vande Bharat and margins volition beryllium the cardinal points to follow.

ICICI Securities pegs BHEL's gross astatine Rs 8,922.2 crore, up 10.7 per cent YoY and 6.1 per cent QoQ, with a gross borderline of 34.7 per cent, expanding 555 bps sequentially. Its EBITDA is seen astatine Rs 1,281.2 crore, up 11 per cent YoY and QoQ, with an EBITDA borderline of 3 per cent, rising 122 bps YoY and 765 per cent QoQ. Profit earlier taxation is seen astatine Rs 696.5 crore, down 23.4 per cent YOY.

For BHEL, we expect EBITDA to amended connected the backmost of close backmost of provisioning during the quarter. Commentary connected the bid inflow visibility, chiefly Vande Bharat, thermal power; borderline betterment and relationship receivable would beryllium the key, said ICICI Securities, keeping BHEL among its apical picks from the sector

Antique Stock Broking expects BHEL to study a gross of Rs 9,146.2 crore, rising 13.5 per cent YoY and 73.8 per cent QoQ, with a EBITDA astatine Rs 1,424.6 crore, rising 23.7 per cent YoY. The institution whitethorn study a PAT astatine Rs 128.3 crore, dropping 54.8 per cent YoY but rising 8.4 per cent QoQ.

Ahead of its results BHEL was dropped astir 3 per cent to Rs 79.05 during the trading league connected Friday. The banal has rallied astir 60 per cent successful the past 1 year, portion it is level successful the twelvemonth 2023 truthful far.

Prabhudas Lilladher sees gross for BHEL astatine Rs 9,213.4 crore for the QFY23, up 14.3 per cent YoY, portion its EBITDA is seen astatine Rs 355.3 crore, plunging 69.2 per cent YoY. The institution whitethorn study PAT astatine Rs 210.3 crore, down 76.9 per cent connected a yearly basis, but surging 578.3 per cent QoQ. The brokerage steadfast has a people terms of Rs 36 connected the banal with a 'sell' tag.

Revenue is expected to turn led by pickup successful execution. Management commentary connected execution pace, moving superior situation, bid pipeline, diversification into non-power segment, margins volition beryllium cardinal monitorables. Q4FY22 numbers included reversal of provisions, resulting successful higher PAT. EBITDA margins are seen astatine 3.9 per cent, which were 14.3 per cent a twelvemonth ago.

Nuvama Institutional Equities sees gross astatine 24,600 crore with a EBITDA borderline of 3.1 per cent for the full twelvemonth FY23. EPS is seen astatine Rs 1.1 with a instrumentality connected Equity astatine 1.5 per cent. The brokerage steadfast upgraded BHEL to ‘hold’ with a people terms of Rs 80 successful April 2023, anticipating a pickup successful thermal orders implicit the adjacent fewer years.