Bharat Heavy Electricals lost 2.23% to Rs 179.40 at 9:29 IST on NSE after net profit on provisional basis fell 51.2% to Rs 3228 crore on 19.51% decline in turnover to Rs 40366 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
The provisional result was announced on Saturday, 5 April 2014.
Meanwhile, the S&P BSE Sensex was up 43.10 points or 0.19% at 22,402.60.
The stock hit a high of Rs 181.50 and a low of Rs 179 so far during the day.
Bharat Heavy Electricals (Bhel)'s orders inflow declined 11.51% to Rs 28007 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Bhel said that lower net profit in FY 2014 is due to low volumes. Certain ongoing projects have got impacted as the Indian power sector continues to be besieged with issues relating to fund constraints, land acquisition, clearances and coal linkages. Focus on cost optimization through increased localization of super critical technologies, higher value additions; increased vendor base and design optimization efforts aided the company in its margins, Bhel said in statement.
Bhel said it has retained its market leadership position during 2013-14 even while operating in a difficult business environment. Improved focus on project execution enabled the company record highest ever commissioning/synchronization of 13,452 megawatts (MW) of power plants in domestic and international markets in 2013-14, Bhel said in a statement.
Both power & industrial market segments in which the company operates continued to witness fewer project finalizations, Bhel said. The company secured orders worth Rs 28007 crore from its diversified business segments covering both domestic and international markets. Orders in industrial segment at Rs 5007 crore witnessed a 23% jump; Spares & Services at Rs 3433 crore saw a jump of 19% and international segment at Rs 2567 crore witnessed a jump of 28% in 2013-14, Bhel said. The company ended the year with an order book of Rs 101538 crore, Bhel said in a statement.
Fiscal 2013-14 was a year in which Bhel has made significant progress in consolidating its strengths and value propositions to emerge even more competitive for tapping opportunities in the next phase of economic growth of the country, Bhel said in a statement.
Bhel is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.
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