BHEL Q2 Results: State-Run Firm Posts Net Loss Of Rs 238.12 Crore

The company reported a nominal improvement in its income from operations which stood at Rs 4,944.78 crore in the reported quarter in FY24, against Rs 4,927.95 crore on a year-on-year basis.

Bharat Heavy Electricals Limited posted a heavy loss in its financial earnings for the second quarter (Q2) of the current fiscal year on Wednesday. The state-owned power generation equipment manufacturer reported a consolidated net loss of Rs 238.12 crore in the quarter ended September in 2023-24 (FY24), against a consolidated net profit of Rs 12.10 crore logged in the second quarter of the 2022-23 fiscal year (FY23), revealed via an exchange filing.

The company reported a nominal improvement in its income from operations which stood at Rs 4,944.78 crore in the reported quarter in FY24, against Rs 4,927.95 crore logged in the corresponding quarter a year earlier. 

The total expenses of the firm increased by over 2 per cent on a year-on-year (YoY) basis. The engineering firm’s total expenses for Q2FY24 stood at Rs 5,753.32 crore, improving from Rs 5,628.34 crore logged in the same quarter a year earlier. 

Amongst the segments, the revenue for the power sector of the firm increased nearly 3 per cent and stood at Rs 3,927.18 crore for the quarter under review, against Rs 3,814.35 crore clocked in the second quarter of the previous fiscal year. 

The revenue from the industry sector dipped over 8 per cent on a YoY basis. The revenue from this segment stood at Rs 1,017.60 crore for the second quarter of the current fiscal year, against a revenue of Rs 1,113.60 crore reported in the corresponding period a year earlier. 

The firm revealed that its EBITDA stood at a loss of Rs 191 crore in Q2FY24, against a loss of Rs 19 crore logged in the same quarter last year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often used by companies as an alternative to net income to better understand their finances. 

The company outlined a weak external backdrop, elevated crude prices, and high interest rates as its major concerns. The shares of the public sector firm dipped more than 3.60 per cent before the earnings announcement during the trading session on Wednesday.