BHEL Q4 Results: PSU stock surges 5% ahead of earnings; order inflow, margins key to watch

Shares of state-owned Bharat Heavy Electricals Ltd. climbed as much as 5% during Friday's trading session, ahead of the company's March quarter earnings on May 16.

Net profit for the company is expected to increase by 42% to ₹696 crore, while its revenue may grow by 30% from last year to ₹10,715 crore.

BHEL's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) may surge by 40.6% to ₹1,023 crore, while margin may expand by 74 basis points to 9.55% from 9.81% last year.

Brokerage firm Philip Capital sees strong order inflows of ₹40,200 crore in the quarter. Order inflows could be at ₹88,000 crore for FY25, compared to ₹78,000 crore in FY24, up 13% year-on-year.

Investec expects BHEL's order inflow at ₹43,200 crore as against ₹41,952 crore, up 3% year-on-year.

BHEL has won thermal power plant orders worth 5.5GW in the March quarter.

Consequently, order backlog could increase 20% sequentially and 46% year-on-year to ₹1.9 lakh crore.

Here's what you need to watch out for:

- Outlook on L1 orders and pipeline ahead
- Order execution run-rate
- Outlook on working capital and debtors
- Margin trajectory ahead

Shares of BHEL are trading 4.14% higher on Friday at ₹255.85. The stock has risen over 12% this week so far.