BHEL Q4 results preview: Lockdown in execution-heavy quarter to hit profit by up to 65%

NEW DELHI: Capital goods major BHEL is expected to report up to 65 per cent drop in profit for the March quarter on fall in execution level due the lockdown. Sales is expected to fall by up to 30 per cent while margins are expected to fall drastically by up to 770 basis points.

Analysts said March quarter was an execution-heavy quarter for capital goods companies, whose deliveries were hit by lockdown in the last week of March.

Emkay GlobalNSE -3.11 % expects BHEL to report a 29 per cent drop in sales, as March accounts for a significant chunk of its full-year revenues. It expects further deterioration in working capital due to the lost fortnight of March where payments could have come through.