BHEL Q2FY25 results: Net profit hits Rs 96.7 crore, defies expectations of Rs 100 crore loss
Bharat Heavy Electricals Ltd. State-run (BHEL) defied market expectations with a net profit of Rs 96.7 crore in the September quarter, a surprising performance given estimates had predicted a loss of around Rs 100 crore. The windfall led to BHEL’s shares jumping 10 percent in post-results, pushing the stock up 20 percent in 2024.
Strong Financial Turnover Despite Challenges
BHEL’s Q2 performance was significant given the lack of incremental revenue last year and the absence of any extraordinary gains this quarter. Despite these obstacles, the company has achieved growth, showing a possible positive trend in its operational stability. In the second fiscal quarter, BHEL’s revenue was supported by higher efficiency, while the company maintained a systematic approach to cost management. Stable cash flow has allowed the company to remain profitable amid challenging conditions, underscoring management’s focus on profitability and resource allocation.
Stock Reaction and Market Outlook
After the quarterly report, BHEL shares rose to Rs 238.5, reflecting investor confidence in the company’s financial strength. With shares up 20 percent year-to-date, BHEL is gaining momentum as a potential high-growth stock within the public sector unit (PSU) segment. Analysts highlight BHEL’s turnaround as an optimistic indicator for PSU stocks, especially amid the heavy power sector, and see the stock’s momentum likely to continue in the near term as BHEL capitalizes on its improved performance.
While challenges remain, particularly in terms of sustaining revenue growth without one-time revenue increases, BHEL’s Q2 results reflect a strong position within the PSU sector.
