BHEL tanks over 11%, m-cap erodes by Rs 6,976 cr

Shares of equipment maker Bharat Heavy Electricals Ltd (BHEL) fell sharply by over 11 % today after the company reported muted quarterly profit.

Shares of the company closed at Rs 242.60 on the National Stock Exchange, down by 11.33 % over the last day.

After plunging by over 11 % in intra-day trade, the stock settled 10.41 % lower at Rs 245.15 on the BSE. The market value of the company eroded by Rs 6,976 crore to Rs 60,002 crore.

BHEL was the biggest loser on both the key indices Sensex and Nifty.

"BHEL's Q3 FY12 results missed consensus estimates on lower than expected margins," MF Global said in a report.

"BHEL witnessed sharp cut during the session as the company came out with Q3 FY12 results on Friday reflecting decline in operating profit margin," Shanu Goel Research Analyst Bonanza Portfolio said.

For the December quarter, the company posted a net profit of Rs 1,432.6 crore against Rs 1,412 crore in the year-ago period.

The company reported 14% jump in net profit at Rs 3,660.2 crore in the nine months ended December, 2011.

The power equipment major had a net profit of Rs 3,213.2 crore in the year-ago period.