BHARAT BIJLEE

The name may suggest it is a Govt of India company but it is not. A Mumbai based private sector company, Bharat Bijlee is a leading electrical engineering unit, making transformers, projects, electric motors, elevator systems and drives & automation.

The company had a poor show for Q3FY17 as both its divisions – Power systems and as well as Industrial systems did poorly. Power system turnover dropped 32% (YoY) and EBIT was down 50%; Industrial systems topline slid 9% and EBIT was down 50%.

Overall, net sales dropped 19% at Rs.166 crore; the 17% drop in costs did not help much. EBITDA was down 42% at Rs.7 crore and margins fell from 5.85% to 4.22%. Net profit for the quarter was down 52% (YoY) and down 49% (QoQ) at Rs.4 crore.

The underlying good news here – the other quarters have been good so that has helped the 9MFY17 net profit come in at Rs.9 crore, already ahead of FY16 net profit of Rs.7 crore.

Equity is small at Rs.5.65 crore and reserve at Rs.267 crore. Annualised EPS is at Rs.22 (FV of Rs10).