Shares of Bharat Heavy Electricals Limited (BHEL) declined sharply over 5% and also hit an intraday low of Rs 295 per share on Wednesday following the company’s disappointing fourth-quarter results, which missed Street expectations.
BHEL’s net profit fell approximately 26 per cent on a year-on-year (Y-o-Y) basis to Rs 489.6 crore in the March quarter of the financial year 2024 (Q4FY24), compared to Rs 658 crore in the same quarter a year ago (Q4FY23).
While the company’s revenue rose marginally by 0.4 per cent to Rs 8,260.3 crore in Q4FY24, up from Rs 8,227 crore in Q4FY23, its earnings before interest, taxes, depreciation and amortisation (EBITDA), also known as operating profit, dropped 30.6 per cent to Rs 727.9 crore in Q4FY24, as compared to Rs 1,049 crore in the same quarter a year ago.
BHEL’s EBITDA margin also took a hit, squeezing 400 basis points (bps) to 8.8 per cent in the March quarter of FY24, down from 12.8 per cent in the March quarter of FY23.
As of 10:42 am, the shares were trading 4.37% higher at ₹305.25 on the National Stock Exchange (NSE).
Notably, the company’s Board has recommended a final dividend of 0.25 per share for FY24. BHEL stated, “Final dividend, if declared by the company in the Annual General Meeting, shall be paid/dispatched within 30 days from the date of the Annual General Meeting.”
