BHEL reported headline FY10 results today; these are not audited results which will be published later. FY10 sales are up 21% YoY to Rs340bn compared to
UBS-e of Rs350bn and reported PAT is up 37% to Rs43bn (UBS-e of Rs47bn). The results, though below UBS estimates, are largely in line with street expectations.
Order inflows during FY10 were Rs590bn (-1% YoY), compared to our estimate of Rs564bn. In our view, the positive surprise is from the industry/exports sectors as power sector order flow of Rs420bn is in-line with our estimates. We expect Rs623bn of order inflows in FY11 which could have some upside if BHEL wins some part of the NTPC bulk tendering order (likely in 1H FY11).
News reports indicate that BHEL targets revenues of US$8.8/10-11bn in FY11/12, which is in-line with UBS estimates. FY 11 EPS is expected to be Rs 124.
