BHEL Q1 loss widens to Rs 893.14 cr; lockdown adversely impacts operations

State-run engineering firm BHEL's consolidated net loss widened to Rs 893.14 crore for the quarter ended June as coronavirus-induced lockdown had an adverse impact on its operations.

The consolidated net loss of the company was at Rs 218.93 crore in the quarter ended June 30, 2019, Bharat Heavy Electricals Limited (BHEL) said in a regulatory filing.

According to the statement, total income of the company stood at Rs 2,086.43 crore in the June quarter this year. BHEL had posted a total income of Rs 4,673.38 crore in the year-ago period.

It stated that the group's operations and financial results for the quarter have been very adversely impacted by the lockdown imposed to contain the spread of COVID-19.

The operations gradually resumed with requisite precautions during the quarter with limited availability of workforce and disrupted supply chain, it said.

The results for the quarter are therefore not comparable with those for the corresponding quarter of previous year, it added.

The company has assessed the impact of pandemic on its financial results/position based on the internal and external information available up to the date of approval of these financial results and expects to recover the carrying value of its assets, investments, trade receivables, contract assets & inventories, the statement said.