HBL Power Systems Ltd has posted a steep drop in its net profit at Rs 8.7 crore for the second quarter ended September 30, 2014 against Rs 55.18 crore in the corresponding quarter last year.

The Hyderabad-based battery company registered a total income of Rs 377.64 crore during the second quarter against Rs 300.68 crore in the same period ast year.

Last fiscal ended March 31, 2014, the company closed with a net profit of Rs 45.06 crore and income of Rs 1,280.79 crore.

Hudhud damage

Subsequent to the quarter on October 12, 2014, the assets and inventory of two of the company’s factories situated at Visakhapatnam and Vizianagaram SEZs were severely damaged due to Hudhud cyclone and the production was suspended.

Thereafter, production at Vizianagaram unit has partially recommenced after a gap of three weeks after taking up the restoration work.

Production at Visakhaptnam SEZ is expected to recommence shortly after restoration of assets into their working condition. The company has stated that the damage has been reported to the insurance company and that the loss of assets and loss of profits will be covered.

HBL Power has informed the BSE that the board has approved the proposal and scheme of merger of a 100 per cent subsidiary of HBL Power Systems Ltd with the company.

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