On Tuesday, State-owned Bharat Heavy Electricals Ltd (BHEL) posted a consolidated net loss of Rs 148.77 crore for the third quarter ended December 2023, due to heavy expenses.
BHEL is one the largest engineering and manufacturing companies, engaged in engineering, design, construction, commissioning, testing, and servicing a wide range of products and services.
BHEL’s Performance
Income –
The company recorded a profit of Rs 42.28 crore in Oct-Dec period of the financial year 2022-23. Its revenue in the quarter rose 4.6% on a year-on-year basis, to Rs 5,599 crore from Rs 5,353.94 crore last year.
Expense –
Its expenses also rose to Rs 5,816.87 crore from Rs 5,320.84 crore in the third quarter of last fiscal year.
EBITDA – 
At the operating level, its EBITDA (Earning before interests, taxes, depreciation and amortization) witnessed the loss of Rs 62 crore in the third quarter of fiscal year 2024, which is less than the loss of Rs 143 crore in third quarter of last fiscal year.
Stock Price –
BHEL’s share price recovered from the day’s low price of Rs 201.35 and was trading at Rs 212.15 on NSE which is still lower by 2.10 percent at 3.15 pm.
PSU –
The Public Sector Undertaking (PSU) witnessed a profit of Rs 31 crore in the third quarter of December 2023.
Power –
BHEL witnessed 2 percent growth and a significant increase in its industrial revenue due to escalating demand for electricity.
Reasons for Loss
BHEL faced challenges due to increased costs of vital raw materials such as steel, copper, and rubber. Throughout the year 2023, prices of all three raw materials witnessed a year-on-year increase in every quarter.
Thus, BHEL’s total expense increased by 9 percent in the December quarter, primarily due to a 19 percent rise in raw material costs.
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