BHEL Reports Slightly Wider Q1 Loss Despite Revenue Growth

Bharat Heavy Electricals (BHEL), India’s state-owned power and industrial equipment manufacturer, reported a slightly wider first-quarter loss for the period ending June 30. The company posted a net loss of 2.13 billion rupees ($25.44 million), a marginal increase from the previous year’s loss of 2.12 billion rupees. The wider loss was primarily attributed to rising expenses that overshadowed the growth in demand for power equipment, causing BHEL’s shares to drop by 1.2%.

BHEL’s financial results also included restated figures from the previous year, reflecting adjusted expenses amounting to 2.33 billion rupees. This adjustment covered deferred tax, provisions, and write-offs, according to an exchange filing.

The company’s expenses increased by 9% to 58.75 billion rupees, mainly due to a 9.4% rise in the cost of materials and services, which has been a recurring issue impacting its earnings over the past four quarters.

Despite the increase in expenses, BHEL’s revenue from operations grew nearly 10% to 54.85 billion rupees. This growth was supported by a 4% rise in revenue from its power segment. The surge in revenue coincided with a record high in India’s electricity generation during the April-June quarter, driven by peak summer demand, which boosted orders for power equipment.

Additionally, BHEL’s industrials business, its second-largest segment, saw a substantial 30% increase in revenue for the quarter. BHEL’s competitors, Tata Power and Siemens, are expected to release their quarterly results next month, providing further context to the market dynamics affecting the industry.