Bangalore-based public sector defence company, Bharat Electronics Ltd (BEL) today reported a whopping decline of 56 per cent in its net profit at Rs 104 crore for the second quarter ended September 30, 2010 as compared to Rs 237 crore in the corresponding quarter last fiscal.
The drop in profits was mainly due to lower realization in orders from the defence forces and increase in employee’s wages.
The net sales of the company for the quarter also dropped by 26 per cent to Rs 960 crore compared to Rs 1,299 crore in the year ago period.
The profit from operations before interest and other income came down to Rs 77.5 crore from Rs 300.8 crore in the same quarter last year, showing a drop of 74.2 per cent year on year.
The increase in employees cost is due to impact of revision of wages with regards to non-executives finalised during the current financial year.
The employee costs went up by 39.8 per cent to Rs 268.7 crore during the second quarter as against Rs 192 crore reported in the corresponding quarter last year.