Bharat Bijlee

After a turnaround performance in Q4FY16 with a net profit of Rs.2.5 crore, the company is back in the red. It was a very disappointing show for Q1FY17, posting a net loss of Rs.3.37 crore. Net sales growth was static at Rs.130 crore, same as in Q1FY16. Expenses were also almost the same at Rs.134 crore. Only its ‘other operating income’ slipped 63% (YoY) but it was no tax outgo which helped it end the quarter with a much lower net loss than in Q1FY16, which was at Rs.5 crore.

The company has two segments – Power systems and Industrial systems. The Power Systems segment showed a marginal 2% rise in topline and it turned around at the EBIL level with a profit of Rs.1.5 crore v/s loss of Rs.23 lakh (YoY). Industrial systems segment did not do well at all – topline slipped 1.5% and EBIT was down 50%.

The company’s equity is pretty low at Rs.5.65 crore and reserves is huge at Rs.267 crore. Promoter stake, held by Danani and Mehta families, is at 35.8%, while institutional investors (mainly LIC and 2 public sector insurers) hold 18.1%. HNIs own 3%, leaving balance 43.1% in the hands of retail shareholders.