Tight control on expenses, be it raw material costs, employee costs or other expenses helped BHEL post a Rs155 crore operating profit from a loss in the year-ago period. But order inflows were poor and they paint a gloomy picture of the economy. BHEL’s net profit of Rs109 crore was a huge 82% above consensus estimates. In sharp contrast to the profit outperformance was the paltry Rs1,800 crore order inflow during the quarter, down 30% from a year ago. BHEL’s capacity for boiler-turbine-generator is 20 gigawatts (GW) and the entire industry pipeline of estimated orders is much lower.

Source: Mint November 08, 2016 19:22 UTC