Download - BHEL 4Q FY 2013
-
7/30/2019 BHEL 4Q FY 2013
1/12
Please refer to important disclosures at the end of this report 1
Quarterly Data (Standalone)(` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq)Revenue 19,204 19,589 (2.0) 10,220 87.9EBITDA 4,651 4,937 (5.8) 1,634 184.6
EBITDA margin (%) 24.2 25.2 (98)bp 16.0 823bp
PAT 3,238 3,380 (4.2) 1,182 173.9Source: Company, Angel Research
Bharat Heavy Electricals Ltd (BHEL)s top-line performance was largely in-line with
our estimates, declining by 2.0% yoy to `19,204cr. Order inflows surprised
positively, coming in at `20,800cr in 4QFY2013 (vs `7,719cr in 4QFY2012 and
`10,739cr in 9MFY2013), primarily due to NTPC bulk orders being booked
during the quarter. However, the total order book declined by 14.7% yoy to
`115,160cr by the end of the quarter, thus implying order book coverage of
~2.4x, which has been continuously deteriorating over last couple of years.
BHELs order backlog consists of 81% orders from power sector (primarily the
BTG space). Considering headwinds in the power sector, not many orders are
expected to be finalized in next few quarters, limiting BHELs order visibility.
Key Highlights: Although the power segment, contributing 81% to the top-lineremained flat yoy at `15,539cr, its operating margin of 26.1% was better than
our expectation, contracting by only 100bp yoy (due to softening in commodity
prices). However, margins of industry segment disappointed, contracting by
878bp yoy to 21.6%. Consequently, blended margins contracted by 98bp yoy to
24.2%. On the bottom-line front, net profit declined by 4.2% yoy to `3,238cr.
Outlook and valuation: Given the strong competition (domestic as well asinternational), declining order book and a weak capex cycle, we expect BHELs
profit, margin and ROE to decline from the current levels. Hence, the cheaper
valuations of 9.4x FY2014E EPS and 12.0x FY2015E EPS respectively, are largely
overshadowed by structural issues plaguing the company. We continue to remainNeutral on the stock.Key financials (Consolidated)Y/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet sales 48,355 48,916 44,054 39,326% chg 13.7 1.2 (9.9) (10.7)
Adj. net profit 7,087 6,689 5,043 3,936% chg 17.1 (5.6) (24.6) (21.9)
EBITDA (%) 20.6 19.4 16.8 15.1
EPS (`) 29.0 27.3 20.6 16.1P/E (x) 6.7 7.1 9.4 12.0
P/BV (x) 3.0 2.4 2.0 1.8
RoE (%) 49.5 37.6 23.5 16.1RoCE (%) 29.2 23.6 16.4 12.3
EV/Sales (x) 0.8 0.9 0.9 1.0
EV/EBITDA (x) 4.1 4.4 5.6 6.7
Source: Company, Angel Research
NEUTRALCMP `193
Target Price -
Investment Period -
Stock Info
Sector
Net Debt (`cr) (5,227)
Bloomberg Code BHEL@IN
Shareholding Pattern (%)
Promoters 67.7
MF / Banks / Indian Fls 12.5
FII / NRIs / OCBs 15.1
Indian Public / Others 4.7
Abs. (%) 3m 1yr 3yr
Sensex 2.0 23.6 19.6
BHEL (6.7) (7.6) (58.1)
Reuters Code BHEL.BO
BSE Sensex 19,704
Nifty 5,984
Avg. Daily Volume 507,905
Face Value (`) 2
Beta 1.1
52 Week High / Low 272/175
Capital Goods
Market Cap (`cr) 47,202
Amit Patil022-39357800 Ext: 6839
BHELPerformance Highlights
4QFY2013 Result Update | Capital Goods
May 24, 2013
-
7/30/2019 BHEL 4Q FY 2013
2/12
BHEL | 4QFY2013 Result Update
May 24, 2013 2
Exhibit 1:Quarterly performance (Standalone)
(` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Sales 18,850 19,260 (2.1) 10,042 87.7 47,618 47,230 0.8Other operating income 354 329 7.5 178 - 807 794 1.6Total income 19,204 19,589 (2.0) 10,220 87.9 48,425 48,024 0.8Stock adjustments 967 530 149 116 (823)
Raw Material 9,662 10,605 (8.9) 5,588 72.9 27,240 28,240 (3.5)
(% of total income) 55.3 56.8 56.1 56.3 58.8
Employee Cost 1,439 1,478 (2.6) 1,437 0.1 5,753 5,466 5.3
(% of total income) 7.5 7.5 14.1 11.9 11.4
Other Expenses 2,485 2,039 21.9 1,412 76.0 5,927 5,244 13.0(% of total income) 12.9 10.4 13.8 12.2 10.9
Total Expenditure 14,553 14,652 (0.7) 8,586 69.5 39,035 38,127 2.4EBITDA 4,651 4,937 (5.8) 1,634 184.6 9,389 9,898 (5.1)(EBITDA %) 24.2 25.2 16.0 19.4 20.6
Interest 41 18 121.5 51 (20.4) 125 51 144.5
Depreciation 289 254 13.7 220 31.4 953 801 19.1
Other Income 292 399 (26.7) 332 (12.0) 1,122 1,256 (10.7)
PBT 4,614 5,064 (8.9) 1,696 172.1 9,432 10,302 (8.4)(% of total income) 24.0 25.8 16.6 19.5 21.5
Total Tax 1,377 1,684 (18.2) 514 167.9 2,818 3,262 (13.6)
(% of PBT) 29.8 33.3 30.3 5.8 6.8
PAT (Reported) 3,238 3,380 (4.2) 1,182 173.9 6,615 7,039 (6.0)(% of total income) 16.9 17.3 11.6 13.7 14.7
EPS (`)* 13.2 13.8 (4.2) 4.8 173.9 27.0 28.8 (6.0)Source: Company, Angel Research.* Note: Adjusted for stock split
-
7/30/2019 BHEL 4Q FY 2013
3/12
BHEL | 4QFY2013 Result Update
May 24, 2013 3
Top-line in-line with our estimates
Bharat Heavy Electricals Ltd (BHEL)s top-line performance for 4QFY2013 was
largely in-line with our estimates, declining by 2.0% yoy to `19,204cr. Although
the power segment (contributing 81% to the top-line) remained flat yoy to
`15,539cr, the industrial segment declined by 7.2% yoy to `4,341cr on account of
industrial slowdown which is leading to deferment of capacity addition resulting in
lower order inflows, delay in project execution and payments.
Exhibit 2:Top-line trend
Source: Company, Angel Research
Exhibit 3:Segment-wise performance
Y/E March (` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower 15,539 15,574 (0.2) 8,308 87.0 39,577 37,863 4.5
Industry 4,341 4,679 (7.2) 2,237 94.1 10,604 11,659 (9.0)
Total Revenue 19,880 20,253 (1.8) 10,544 88.5 50,181 49,522 1.3EBITPower 4,062 4,260 (4.7) 1,522 166.8 8,559 8,184 4.6
Industry 936 1,420 (34.1) 409 129.0 2,197 3,342 (34.3)
Total EBIT 4,998 5,680 (12.0) 1,931 158.8 10,756 11,526 (6.7)Revenues mix (%)Power 78.2 76.9 78.8 78.9 76.5
Industry 21.8 23.1 21.2 21.1 23.5
EBIT Margin (%)Power 26.1 27.4 18.3 21.6 21.6
Industry 21.6 30.4 18.3 20.7 28.7
Total 25.1 28.0 18.3 21.4 23.3Source: Company, Angel Research
18,2
22
7,2
71
10,5
46
10,7
43
19,5
89
8439
10562
10220
19204
30.7
10.2
24.2
19.1
7.5
16.10.2
(4.9)
(2.0)
-10
0
10
20
30
40
0
4,000
8,000
12,000
16,000
20,000
24,000
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Sales (` cr, LHS) Growth (yoy %)
-
7/30/2019 BHEL 4Q FY 2013
4/12
BHEL | 4QFY2013 Result Update
May 24, 2013 4
Exhibit 4:Power segment revenue and growth
Source: Company, Angel Research
Exhibit 5:Industry segment revenue and growth
Source: Company, Angel Research
Softening of commodity prices limit margin contraction
BHELs blended margins contracted by 100bp yoy to 24.2%. The Power segments
margin stood at 26.1%, a contraction of only 122bp yoy (in spite of tough
competition), aided by softening in commodity prices. However, margins of
industry segment disappointed, contracting by 878bp yoy to 21.6%.
Exhibit 6:Segment EBIT Margin
Source: Company, Angel Research
Exhibit 7:Blended EBITDA margins
Source: Company, Angel Research
Net Profit declines 4.2% yoy
Subdued order inflow since last couple of years has led to a decline in advance
payments, forcing the company to borrow more to fund its working capital
requirements. Consequently, the interest expense increased to `41cr in 4QFY2013
(vs `18cr in 4QFY2012). Tax benefit on R&D expenses led to 18.2% yoy fall in tax
expenses. Thus, net profit declined by 4.2% yoy to `3,238cr.
15,1
44
5,7
80
7,7
97
8,7
11
15,5
74
6,7
72
8,9
58
8,3
08
15,5
39
35.8
7.610.5
58.3 2.8
17.2
14.9 (4.6)
(0.2)
-10
0
10
20
30
40
50
60
70
-
3,500
7,000
10,500
14,000
17,500
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Power (` cr, LHS) Growth (yoy %)
3,7
09
1,6
53
2,9
60
2,3
67
4,6
79
1,9
72
2,0
55
2,2
37
4,3
41
17.819.1
78.2
(37.3)
26.1
19.3(30.6)
(5.5)
(7.2)
-50
-25
0
25
50
75
100
-
800
1,600
2,400
3,200
4,000
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Industry (` cr, LHS) Growth (yoy %)
27.3
16.5
16.9
19.0
27.4
17.8
19.7
18.3
26.1
26.6
22.6
27.0
31.6
30.4
21.0
21.3
18.3
21.6
-
6.0
12.0
18.0
24.0
30.0
36.0
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
(%)
Power segment EBITM Industry segment EBITM
20.6
14.6
19.2
23.0 22.4
15.3
18.6 19.4
25.2
14.2
18.016.0
24.2
0
5
10
15
20
25
30
0
1,000
2,000
3,000
4,000
5,000
6,000
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
EBITDA (` cr, LHS) EBITDAM (%, RHS)
-
7/30/2019 BHEL 4Q FY 2013
5/12
BHEL | 4QFY2013 Result Update
May 24, 2013 5
Order inflow boosted by NTPC bulk order
Order inflows surprised positively, coming in at `20,800cr in 4QFY2013 (vs
`7,719cr in 4QFY2012 and `10,739cr in 9MFY2013), primarily due to NTPC bulk
orders being booked during the quarter. Thus, for the full year, the total order
inflow increased by robust 43% yoy to `31,650 (aided by low base). However, the
total order book declined by 14.7% yoy to `115,160cr by the end of the quarter,
thus implying order book coverage of ~2.4x, which has been continuously
deteriorating over last couple of years. BHELs order backlog consists of 81%
orders from power sector (primarily the BTG space). With many headwinds in the
power sector, not many orders are expected to be finalized in next few quarters,
limiting BHELs order visibility.
Exhibit 8:Declining Order Book
Source: Company, Angel Research
Exhibit 9:Order book to sales (x)
Source: Company, Angel Research
Exhibit 10:Orders won during FY2013
Order details Value (` Cr)Power 25,560
Exports 2,004
Industrial Segment order flows 4,086
Total order inflows 31,650Source: Company, Angel Research Note
Outlook
Deteriorating dynamics in the BTG space: The recent trend in biddings andprojects wins indicates that BHELs leadership position is under threat, thus hinting
at a loss in its market share going ahead. Further, given the structural issues faced
by the power sector, times look tough for the BTG players.
Stock to remain under pressure: BHEL is trading at historically low valuations of9.4x and 12.0x on FY2014E and FY2015 EPS estimates respectively, owing to 1)
weak order inflow; 2) weak investment capex due to a high interest rate regime,
which could take more time to gather momentum than earlier anticipated; and 3)
changing competitive dynamics in the BTG space with strong capacity additions.
We believe these concerns are far from over and hence, expect the stock to remainunder pressure.
164,1
45
159,6
39
161,0
46
146,5
41
135,0
00
132,9
00
122,3
00
113,7
00
115,1
60
14.1
7.9 4.8(7.0)
(17.8)(16.7)
(24.1) (22.4)(14.7)
(30)
(25)
(20)
(15)
(10)
(5)
0
5
1015
20
-
40,000
80,000
120,000
160,000
200,000
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Order Backl og (` cr, LHS) Gro wth ( yo y % , RHS)
4.3 4.3 4.2 4.13.9
3.73.6
3.1
2.82.7
2.52.3 2.4
2.0
2.5
3.0
3.5
4.0
4.5
5.0
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
-
7/30/2019 BHEL 4Q FY 2013
6/12
BHEL | 4QFY2013 Result Update
May 24, 2013 6
Valuation: Given the strong competition (domestic as well as international),declining order flows and a weak capex cycle, we expect BHELs profit margin and
ROE to decline from the current levels. Hence, the cheaper valuations of 9.4x
FY2014E EPS and 12.0x FY2015E EPS respectively, are largely overshadowed bystructural issues plaguing the company. We continue to remain Neutral on thestock.Exhibit 11:One year forward PE Band Chart
Source: Company, Angel Research
0
100
200
300
400
500
600
700
800
Jan-0
7
May-0
7
Sep-0
7
Jan-0
8
May-0
8
Sep-0
8
Jan-0
9
May-0
9
Sep-0
9
Jan-1
0
May-1
0
Sep-1
0
Jan-1
1
May-1
1
Sep-1
1
Jan-1
2
May-1
2
Sep-1
2
Jan-1
3
May-1
3
Share Price (`) 6x 12x 18x 24x
-
7/30/2019 BHEL 4Q FY 2013
7/12
BHEL | 4QFY2013 Result Update
May 24, 2013 7
Exhibit 12:Peer comparison
Company Reco. CMP Tgt. price Upside P/BV(x) P/E(x) FY2013-15E RoE (%)(`) (`) (%) FY14E FY15E FY14E FY15E EPS CAGR FY14E FY15E
ABB* Sell 661 461 (30.3) 5.2 5.0 57.4 39.0 61.6 9.3 13.1BHEL Neutral 193 - - 2.0 1.8 9.4 12.0 (23.3) 23.5 16.1BGR Energy Neutral 190 - - 1.0 0.9 7.6 6.8 11.2 25.2 22.6
Crompton Greaves Buy 96 117 21.4 1.6 1.4 14.0 10.3 111.6 11.7 14.5
Jyoti Structures Buy 28 33 16.9 0.3 0.3 3.2 2.7 15.2 9.9 10.5
KEC International Buy 43 63 45.3 0.9 0.8 7.1 5.1 83.5 20.2 23.0
Thermax Neutral 583 - - 3.3 2.9 19.6 17.7 10.7 17.9 17.4
Source: Company, Angel Research Note:* denotes December ending financials of a company
Company Background
BHEL is the largest manufacturer of power equipment (boiler and turbine
generators) in India. The company operates in two segments - power and industry.
Sets produced by BHEL account for ~66% of India's installed power capacity,
which generate ~70% of India's power. Notably, BHEL is the first domestic
company to foray into the supercritical technology.
-
7/30/2019 BHEL 4Q FY 2013
8/12
BHEL | 4QFY2013 Result Update
May 24, 2013 8
Profit & loss statement (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ETotal Income 33,653 42,538 48,355 48,916 44,054 39,326% chg 24.6 26.4 13.7 1.2 (9.9) (10.7)Net Raw Materials 19,626 22,767 27,734 27,626 25,155 22,495Other Mfg costs 1,612 5,744 5,121 5,983 5,771 5,191
Personnel 6,590 5,453 5,530 5,824 5,727 5,702
Other - - - - - -
Total Expenditure 27,828 33,963 38,385 39,433 36,653 33,388
EBITDA 5,825 8,575 9,971 9,483 7,401 5,938% chg 39.8 47.2 16.3 (4.9) (22.0) (19.8)(% of Net Sales) 17.3 20.2 20.6 19.4 16.8 15.1
Depn & Amort. 339 478 803 957 848 950
EBIT 5,486 8,097 9,167 8,525 6,554 4,988% chg 41.2 47.6 13.2 (7.0) (23.1) (23.9)(% of Net Sales) 16.3 19.0 19.0 17.4 14.9 12.7
Interest & other Charges 37 56 53 128 108 112
Other Income 1,165 1,027 1,272 1,129 1,025 955
(% of PBT) 17.6 11.3 12.3 11.8 13.7 16.4
Others 7.2 (1.8) (19.1) - - -
Recurring PBT 6,621 9,066 10,367 9,527 7,470 5,831% chg 36.9 36.9 14.4 (8.1) (21.6) (21.9)Extraord. Exp/(Inc.) - - - (4.1) - -
PBT (reported) 6,621 9,066 10,367 9,531 7,470 5,831Tax 2,294 3,012 3,280 2,838 2,428 1,895(% of PBT) 34.6 33.2 31.6 29.8 32.5 32.5
PAT (reported) 4,327 6,053 7,087 6,693 5,043 3,936Add: earnings of associate - - - - - -Less: Minority interest (MI) - - - - - -
Prior period items - - - - - -
PAT after MI (reported) 4,327 6,053 7,087 6,693 5,043 3,936ADJ. PAT 4,327 6,053 7,087 6,689 5,043 3,936% chg 38.9 39.9 17.1 (5.6) (24.6) (21.9)(% of Net Sales) 12.9 14.2 14.7 13.7 11.4 10.0
Basic EPS (`) 17.7 24.7 29.0 27.3 20.6 16.1Fully Diluted EPS (`) 17.7 24.7 29.0 27.3 20.6 16.1% chg 38.9 39.9 17.1 (5.6) (24.6) (21.9)
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
-
7/30/2019 BHEL 4Q FY 2013
9/12
BHEL | 4QFY2013 Result Update
May 24, 2013 9
Balance Sheet (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 490 490 490 490 490 490Preference Capital - - - - - -
Reserves& Surplus 15,406 19,666 24,914 30,043 33,522 35,894
Shareholders Funds 15,896 20,155 25,403 30,532 34,011 36,383Minority Interest - - 5 5 5 5
Total Loans 148 196 369 2,624 1,726 1,526
Deferred Tax Liability (1,529) (2,165) (1,549) (1,556) (1,556) (1,756)
Other long term liablities 9,171 7,567 5,811 5,111 2,561
Total Liabilit ies 14,516 27,357 31,794 37,416 39,298 38,720APPLICATION OF FUNDSGross Block 6,858 8,344 10,017 11,201 12,675 14,084
Less: Acc. Depreciation 4,249 4,734 5,499 6,215 7,063 8,013
Net Block 2,609 3,610 4,519 4,986 5,612 6,071Capital Work-in-Progress 1,552 1,757 1,763 1,949 1,876 1,867
Goodwill - - - - - -
Investments 6 11 6 6 6 6
Current Assets 43,002 44,677 50,048 52,441 50,591 48,461
Cash 9,856 9,707 6,734 7,845 7,237 8,780
Loans & Advances 2,662 3,504 3,105 3,054 2,908 2,596
Other 407 310 152 303 314 289
Current liabilities 32,656 30,095 34,086 32,780 29,601 28,500
Net Current Assets 10,346 14,581 15,961 19,660 20,990 19,962Other non CA 2 7,398 9,545 10,814 10,814 10,814
Total Assets 14,516 27,357 31,794 37,416 39,298 38,720Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
previous year numbers
-
7/30/2019 BHEL 4Q FY 2013
10/12
BHEL | 4QFY2013 Result Update
May 24, 2013 10
Cashflow (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 6,621 9,066 10,367 9,527 7,470 5,831
Depreciation 339 547 806 957 848 950(Inc)/Dec in Working Capital (2,403) (4,385) (8,523) (5,860) (2,637) (179)
Less: Other income 833 647 837 1,129 1,025 955
Direct taxes paid 2,021 2,942 3,197 2,838 2,428 1,895
Others (241) 654 462.9 4 - -
Cash Flow from Operations 1,463 2,292 (921) 661 2,228 3,752(Inc.)/Dec.in Fixed Assets (1,752) (1,691) (1,680) (1,370) (1,400) (1,400)
(Inc.)/Dec. in Investments - (5) 5 - - -
Other income 1,165 1,027 1,272 1,129 1,025 955
Cash Flow from Investing (587) (669) (402) (241) (375) (445)Issue of Equity - - - - - -
Inc./(Dec.) in loans (18) 48 172 2,255 (897) (200)
Dividend Paid (Incl. Tax) 1,332 1,821 1,821 1,564 1,564 1,564
Others - - - - - -
Cash Flow from Financing (1,350) (1,773) (1,649) 691 (2,461) (1,764)Inc./(Dec.) in Cash (474) (150) (2,972) 1,111 (608) 1,543
Opening Cash balances 10,330 9,856 9,707 6,734 7,845 7,237Closing Cash balances 9,856 9,707 6,734 7,845 7,237 8,780
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
-
7/30/2019 BHEL 4Q FY 2013
11/12
BHEL | 4QFY2013 Result Update
May 24, 2013 11
Key Ratios
Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 10.9 7.8 6.7 7.1 9.4 12.0P/CEPS 10.1 7.2 6.0 6.2 8.0 9.7
P/BV 3.0 3.7 3.0 2.4 2.0 1.8
Dividend yield (%) 2.4 3.3 3.3 2.9 2.9 2.9
EV/Sales 1.1 0.9 0.8 0.9 0.9 1.0
EV/EBITDA 6.4 4.4 4.1 4.4 5.6 6.7
EV/Total Assets 2.3 1.3 1.2 1.1 1.0 1.0
OB/Sales 4.2 3.8 2.8 2.4 2.3 2.5
Per Share Data (`)EPS (Basic) 17.7 24.7 29.0 27.3 20.6 16.1
EPS (fully diluted) 17.7 24.7 29.0 27.3 20.6 16.1
Cash EPS 19.1 26.7 32.2 31.2 24.1 20.0
DPS 4.7 6.4 6.4 5.5 5.5 5.5
Book Value 64.9 52.1 64.8 80.6 94.8 104.5
DuPont AnalysisEBIT margin (%) 16.3 19.0 19.0 17.4 14.9 12.7
Tax retention ratio 0.7 0.7 0.7 0.7 0.7 0.7
Asset turnover (x) 7.5 3.3 2.1 1.7 1.4 1.2
ROIC (Post-tax) (%) 80.3 41.6 27.0 20.7 13.7 10.3
Cost of Debt (Post Tax) (%) 15.2 21.8 12.8 6.0 3.4 4.7
Leverage (x) (0.6) (0.7) (0.4) (0.3) (0.2) (0.3)
Operating RoE (%) 40.5 26.9 21.3 16.8 11.2 8.7
Returns (%)RoCE (Pre-tax) 37.7 35.5 29.2 23.6 16.4 12.3
Angel RoIC (Pre-tax) 176.3 71.4 42.8 31.6 21.5 16.2
RoE 30.0 42.3 49.5 37.6 23.5 16.1
Turnover ratios (x)Asset Turnover (Gross Block) 5.4 5.5 5.2 4.6 3.7 2.9
Inventory / Sales (days) 93 87 91 102 102 102
Receivables (days) 200 176 219 255 250 255
Payables (days) 332 395 437 431 429 419
WC cycle (ex-cash) (days) (8) 23 53 79 106 116Solvency ratios (x)Net debt to equity (0.6) (0.7) (0.4) (0.3) (0.2) (0.3)
Net debt to EBITDA (1.7) (1.1) (0.6) (0.6) (0.7) (1.2)
Int. coverage (EBIT / Int.) 149.5 143.6 172.6 66.8 60.6 44.5
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
-
7/30/2019 BHEL 4Q FY 2013
12/12
BHEL | 4QFY2013 Result Update
May 24 2013 12
Research Team Tel: 022 3935 7600 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement BHEL
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)