BHEL Q2 net jumps 39% as raw material costs dip

Bharat Heavy Electricals Ltd , the country’s largest power equipment manufacturer, has posted a 39 per cent jump in net profit for the quarter ended September, on the back of lower raw material costs. The company posted a net profit of Rs 857.9 crore in the quarter as compared to Rs 615.7 crore in the corresponding quarter last year.

“The increased profit is mainly attributed to the lower material costs,” said B P Rao, chairman and managing director. Total income in the quarter increased by 22 per cent to Rs 6,923 crore as compared to the corresponding period last year.

The share price at the BSE at the close today was down 1.56 per cent at Rs 2,384.30, as compared to the previous day’s close. At the end of the quarter, the company had an outstanding order book position of around Rs 125,800 crore.