Government-owned Bharat Heavy Electrical Ltd has reported almost 50 per cent decline in net profit for April-June (first quarter) period of 2013-14 because of lower sales.

The factors that have impacted the business are cheap imports of power equipment and sluggish prospects in the domestic power sector.

The company’s net profit dipped to Rs 465.43 crore which is 49.4 per cent lower than Rs 920.90 crore earned during April-June quarter of 2012-13.

Its sales declined substantially to Rs 6,352.55 crore from Rs 8,326.24 crore in the same period a year ago.

At the end of June quarter, the company’s outstanding order book stood at Rs 1,08,600 crore. During the latest June quarter, BHEL’s total expenses were lower at Rs 6,300.34 crore compared with Rs 7,465.21 crore in the corresponding period last financial year. The company’s share closed at Rs 149.05 on Friday show in nearly a per cent decline over Thursday’s closing. In fact, the share slumped to 52 week low of Rs 147.95 during intra day trade on Friday.

Interestingly, the foreign institutional investors’ interest in the company has grown. At the end of June, 2013, their shareholding rose to 14.98 per cent from 12.93 per cent as on June, 2012. During the same time, shareholding of domestic institutional investors came down to 12.23 per cent from 13.11 per cent.

Meanwhile, analysts apprehend that the shares would see further beating on street on Monday. “For first quarter of FY 2014, BHEL reported a disappointing performance, with top-line and bottom-line coming in below our estimates as well as street expectations,” Amit Patil, Research Analyst for Capital Goods with Angel Broking, said.

>shishir.sinha@thehindu.co.in