An increasing preference for renewable energy amid high exposure to thermal power has become a major cause of the consistently disappointing earnings of power plant equipment supplier Bharat Heavy Electricals Ltd . The operating loss has narrowed sequentially, but was higher than forecast. Lower employee costs helped reduce operating losses, analysts at Nomura Financial Advisory and Securities (India) Pvt. “BHEL’s dependence on thermal power, including supply of captive power plants in the industrial segment, is >80% of sales over the last five years. We estimate thermal power to be in a structural weak phase over the next decade.

Source: Mint November 16, 2020 09:56 UTC