Q4FY21 Impact? BHEL share price down 20% - DETAILS highlighted for investors | Standalone loss of Rs 1033 crore

BHEL share price slipped nearly 20% hitting the intraday lows of Rs 61.65. BHEL share price today is Rs 68.3, down Rs 8 or 10.4%. The state-owned company has reported a standalone loss of Rs 1033 crore for the quarter ended March 31, 2021 (Q4FY21). It had posted a loss of Rs 1534 crore in the corresponding quarter of the previous financial year (Q4FY20). Revenue from operations grew 43% to Rs 7171 crore in the reported quarter compared to Rs 5049 crore posted last year. EBITDA loss stood at Rs 1264.3 crore in Q4FY21 compared to an EBITDA loss of Rs 561 crore posted in Q4FY20. In addition, this is the 5th straight quarter of EBITDA Loss and Overall Loss for the company. Other Income dropped 43% to Rs 84 crore. Other expenses increased by 155% to Rs 2257 crore. Power segment revenue grew 50% to Rs 4789 crore. Industry segment revenue grew 38% to Rs 1963 crore.

BHEL said that the demand for power to revive with easing of lockdown and improvement in economic activity. Production-linked incentive (PLI) schemes likely to boost local manufacturing Infra-led demand & pricing environment likely to catapult major capex in steel sector. Capex push by Govt drove a sharp rebound in GFCF (Gross Fixed Capital Formation) growth to 10.9% YoY in 4QFY21 (vs. 2.6% YoY growth in the previous quarter) - strongest growth in the last eight quarters. BHEL said that driven by sharp improvement in growth in manufacturing sector (6.9% YoY), industrial activity registered 7.9% YoY growth in 4QFY21 vs. 2.9% YoY in the previous quarter leading to acceleration in GVA (Gross Value Added) growth to 3.7% YoY in 4QFY21. Resurgence of Covid-19 infections and any possible slow pace of vaccination remain risk to the recovery.

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BHEL said that despite pandemic related shortage of labour, supply chain disruption and financial constraints with customers 3839.48 MW Utility power generation sets, 119.5 MW Captive/ Industrial sets, 170.7 MW of Solar PV plants were commissioned/synchronized. In addition, 6 units of Kaleshwaram Lift Irrigation System (LIS) totaling 644 MW were completed during the year.

BHEL along with consortium partners NTPC and IGCAR successfully completed technical aspects of the R & D phase of Advanced Ultra Super Critical (AUSC) Technology. Indigenization of critical Flue Gas Desulphurization (FGD) plant components like Oxidation blower along with its auxiliary system, Wet Ball Mills etc.

Hon’ble Prime Minister of India Narendra Modi dedicated 2x500 MW lignite based Neyveli New Thermal Power Station to the Nation in Feb 2021. The project, with BTG EPC works done by BHEL, is based on Once Through and Tower Type Boiler design. Unit 3 of Kakrapar Nuclear Power Plant (KAPP) synchronised with Nuclear Steam has BHEL supplied Steam Turbine and Generator Package.