BHEL fourth quarter net down 52% to Rs 888 cr

The major decline in profit came despite a 10.2% cut in expenses to Rs 11,286 cr during the quarter

Bharat Heavy Electricals (BHEL), the country’s largest power equipment manufacturer, has posted a 52 per cent drop in net profit during the fourth quarter ended March on slowdown in project execution. The company reported net profit of Rs 888.35 crore during the quarter against Rs 1,844 crore in the corresponding quarter in the previous financial year.

The major decline in profit came despite a 10.2 per cent cut in expenses to Rs 11,286 crore during the quarter. The company managed to pull down  employee benefit expense by 31 per cent to Rs 915 crore from 1,320 crore in the corresponding quarter in the previous financial year.

Total income of the company also dipped 17 per cent to Rs 12,702 crore during the quarter compared with Rs 15,320 crore in the corresponding quarter of th eprevious financial year.         

For the full-year ended March, BHEL’s net profit was down 59 per cent to Rs 1,419.29 crore from Rs 3,460.78 crore in the corresponding quarter in the previous financial year. Total sales also fell by 23 per cent to Rs 29,541 crore this financial year from Rs 38,388 crore in 2013-14.

Segment-wise, the company’s power business revenue was at Rs 10,240 crore in the fourth quarter, against Rs 12,211 crore in the corresponding quarter. Industry unit revenue was at Rs 2,755 crore compared to Rs 3,221 crore.

The company also said its board has recommended final dividend at 31 percent (Rs 0.62 per share) on the paid up share capital of the company for the year 2014-15. BHEL’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 241, up 2.8 per cent as compared to previous close.