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In line with the trend in the capital goods sector, Bharat Heavy Electricals Ltd (BHEL) reported a much lower profit of Rs 456 crore for the September quarter against Rs 1,274.45 crore in the corresponding period last year
Total income in the second quarter was Rs 9,482.25 crore against Rs 10,692.22 crore a year ago.
The earnings per share stood at Rs 1.86 against Rs 5.21.
The company, however, said the latest numbers are not comparable with previous quarters as it included the financial performance of the erstwhile Bharat Heavy Plates and Vessels Ltd, the sick company merged with BHEL this year.
“Financial results for three months and six months ended September 30, 2013, include the results of Heavy Plates and Vessels Plant, which was earlier known as Bharat Heavy Plate and Vessels. Consequent to this, the impact of HPVP for and up to the quarter ended on September 30 includes a turnover of Rs 16.69 crore and loss of Rs 191.35 crore. The impact on reserves and surplus is a reduction by Rs 311 crore,” the company said.
This quarter is also significant as the company did not get a single order for its main business—power segment. In fact, it did not get any order for the first six months of the current fiscal. It secured the first order last month when Neyveli Lignite Corp Ltd awarded a contract for supply of steam generator package for two thermal units of 500MW, each valued at Rs 2,569 crore. As on September 30, the company had an outstanding order book of Rs 1.02 lakh crore.
The latest number has disappointed the market as well as analysts. This was evident as BHEL’s share shed 1.3 per cent to close at Rs 140.45 on Wednesday.
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