Bharat Heavy Electricals Ltd (BHEL) shares cracked over 11 percent in intraday trade on Tuesday after the state-owned company reported a consolidated net loss of Rs 219 crore for the first quarter ended June (Q1) against a profit of Rs 40 crore in the year-ago period.
At 3:21 pm, BHEL shares were trading at Rs 50.40, down 11.4%, hitting fresh 52-week low. The stock has corrected nearly 22% in the last one year.
On a standalone basis, BHEL reported a loss of Rs 216.25 crore in the June quarter compared with a net profit of Rs 155.58 crore a year ago. Net sales also declined 23.8% year-on-year to Rs 4,410.29 crore during the quarter.
BHEL’s total income fell significantly to Rs 4,673.38 crore during the June quarter from Rs 6,116.21 crore a year earlier, impacting the company’s overall financials.
Revenue from power segment declined to Rs 3,491.54 crore in the quarter under review from Rs 4,636.18 crore a year ago. Industry segment revenue also dipped to Rs 919.55 crore from Rs 1,160.52 crore.
Brokerage house ICICI Direct, in its research report dated 12 August, recommended investors to ‘hold’ the stock, keeping the target price of Rs 60. It said BHEL’s Q1 earnings were mainly impacted by execution headwinds, increased interest cost and lower other income.
BHEL, owned and founded by the government of India, is an engineering and manufacturing company based in New Delhi. Established in 1964, the company is India’s largest power generation equipment manufacturer.
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Source: News18