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Bharat Heavy Electricals Limited (BHEL) has slipped 5.4% to Rs 212 on National Stock Exchange after a sharp 58% year-on-year drop in its net profit at Rs 194 crore for the quarter ended June 30, 2014 (Q1), mainly due to decline in sales from power and industry segments.
The state-owned company had profit of Rs 465 crore during the same period last fiscal.
The company's income from operations was down 20% to Rs 5,068 crore from Rs 6,353 crore in the corresponding quarter last fiscal.
BHEL’s lower sales primarily due to slowdown in execution – as the clients were unable to arrange resources and delay in project clearance. In addition, BHEL was forced to suspend some of dispatches for non-payment.
Lack of short-cycle orders continue to hit the industry segment, while slower pace of execution on account of client side issues to impact the orders from the power sector, says analyst at Karvy Stock Broking.
The stock opened at Rs 214 and touched high of Rs 216 so far. A combined 1.5 million shares changed hands on the counter in early morning deals on NSE and BSE.
The state-owned company had profit of Rs 465 crore during the same period last fiscal.
The company's income from operations was down 20% to Rs 5,068 crore from Rs 6,353 crore in the corresponding quarter last fiscal.
BHEL’s lower sales primarily due to slowdown in execution – as the clients were unable to arrange resources and delay in project clearance. In addition, BHEL was forced to suspend some of dispatches for non-payment.
Lack of short-cycle orders continue to hit the industry segment, while slower pace of execution on account of client side issues to impact the orders from the power sector, says analyst at Karvy Stock Broking.
The stock opened at Rs 214 and touched high of Rs 216 so far. A combined 1.5 million shares changed hands on the counter in early morning deals on NSE and BSE.
