BHEL declines over 8% on disappointing Q1 results

The stock dipped 8.5% to Rs 258 after reported a sharp 82% YoY decline in net profit at Rs 34 crore for June quarter.

Bharat Heavy Electrical Limited (BHEL) has dipped by 8.5% to Rs 258 on the BSE after the company reported a sharp 82% year-on-year (YoY) decline in net profit at Rs 34 crore for the quarter ended June 30, 2015 (Q1), on account of lower operational income. The state-owned company had posted a profit of Rs 194 crore in the same quarter last year.

Total income from operations declined by 15.4% to Rs 4,362 crore in the June quarter against Rs 5,155 crore in the corresponding quarter of previous year.

Analysts on an average had expected profit of Rs 222 crore on operational income of Rs 5,011 crore.

The company said that it had an outstanding order book position of about Rs 116,200 crore at the end of June quarter.

At 01:55 PM, the stock was down 8.4% at Rs 259 on the BSE after hitting an intra-day high of Rs 284 prior to the announcements of Q1 results. A combined 7.43 million shares have changed hands on the BSE and NSE counters so far.