Revenue declined 22.6% to Rs 5,679.3 crore versus Rs 7,336.4 crore, YoY.
Bharat Heavy Electricals (BHEL) share price touched it the 52-week low of Rs 37.50, falling more than 4% in early trade on 12th February after the company posted a weak set of numbers for Q3FY20.
The company's Q3 profit fell 17.3% to Rs 158.8% against Rs
192 crore in the same quarter last year.
Revenue declined 22.6% to Rs 5,679.3 crore versus Rs 7,336.4
crore YoY.
Earnings before interest, tax, depreciation, and amortization
(EBITDA) rose 50.3% at Rs 328 crore, while margin was up to 280 bps at 5.8% YoY.
| Morgan Stanley | Rating: Underweight | Target: Rs 37 per
share |
The company's EBITDA growth is 22% below consensus and 20%
below our estimate, said Morgan Stanley.
The profit was 32% below consensus and 30% below their estimate.
The slower execution could be due to delayed receivables, it
added.
Jefferies
| Rating: Underperform | Target: Cut to Rs 33 from
Rs 37 per share |
The margin offsets the revenue decline impact. The Q3 EBITDA
was in-line with expectations after several quarters of disappointment, said
Jefferies.
The 20% revenue decline could be made up in Q4. It believes generation CAPEX will remain muted due to
overcapacity.
At 09:22 hrs, Bharat Heavy Electricals was quoting at Rs
37.70, down Rs 0.85, or 2.20 percent on the BSE.
