>BHEL (INDIA INFOLINE)

■ Robust 29% yoy revenue growth aided by 30% growth in power division.

■ Continues to benefit from lower raw material cost, operating margin expands by 225bps yoy to 18.3%

■ Higher depreciation, due to commissioning of the enhanced capacity, partially offset operating profit growth – thus resulting into 42% PAT growth during the quarter

■ Order book continues to remain strong at Rs1.4trn, provides earnings visibility for the next 3 years

■ Maintain BUY, but reduce target marginally to Rs2,709/share to reflect higher competition in FY12.

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