BHEL Q3 results: Net Loss rises to ₹163 crore, expenses up by 9% | Mint
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Business News/ Companies / Company Results/  BHEL Q3 results: Net Loss rises to 163 crore, expenses up by 9%
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BHEL Q3 results: Net Loss rises to ₹163 crore, expenses up by 9%

BHEL experienced a decline in its quarterly profit during the fourth quarter of fiscal 2023, and has continued to report losses in subsequent quarters.

BHEL Q3 results Photo: BloombergPremium
BHEL Q3 results Photo: Bloomberg

Bharat Heavy Electricals Limited (BHEL), on Tuesday, disclosed its financial results for the quarter ended on December 31, 2023. The company posted a standalone net loss of 163 crore for the quarter, against net profit of 31 crore in the year-ago period.

Meanwhile, the standalone revenue from operations of the PSU firm saw a notable increase of 4.5 percent in Q3FY24, reaching 5,504 crore, compared to 5,264 crore recorded in Q3FY23.

Also read: Brookfield India Real Estate Trust to distribute 209 crore to unitholders for Q3

BHEL experienced a decline in its quarterly profit during the fourth quarter of fiscal 2023, and has continued to report losses in subsequent quarters. This trend can be attributed to the challenges posed by increased costs of vital raw materials such as steel, copper, and rubber.

Throughout the calendar year 2023, prices for all three raw materials witnessed year-on-year increases in every quarter. Notably, the company's total expenses surged by 9% in the December quarter, primarily driven by a substantial 19 percent rise in raw material costs.

This surge in income more than compensated for a 6.8 percent increase in its operational earnings, totaling 5273.49 crore

Also read: Q3 Results Today: Siemens, Eicher Motors, BHEL, IRCTC, Hindustan Copper and more post earnings on February 13

Nevertheless, BHEL experienced favorable outcomes driven by the escalating demand for electricity, leveraging its substantial 57 percent stake in India's coal-based power production.

Official data revealed that India's industrial production expanded at its swiftest pace in 16 months during October, marked by a remarkable 20.4 percent upsurge in electricity generation. Subsequently, industrial output registered a growth of 2.4 percent in November and 3.8 percent in December.

Consequently, BHEL witnessed a 2 percent growth in its power revenue and a significant 28 percent increase in its industrial revenue, representing its two primary segments.

 

 

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Published: 13 Feb 2024, 03:32 PM IST
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