Bhel rallies after strong Q1 results

Bharat Heavy Electricals surged 15.03% to Rs 159.15 at 13:56 IST on BSE after net profit surged 54.21% to Rs 77.77 crore on 20.84% growth in total income to Rs 5871.78 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 7 September 2016.

Meanwhile, the S&P BSE Sensex was up 38.46 points or 0.13% at 29,016.48.

The stock spurted on massive volumes. On BSE, so far 54.70 lakh shares were traded in the counter as against average daily volume of 8.03 lakh shares in the past one quarter. The stock was highly volatile. The stock surged as much as 16.47% at the day's high of Rs 161.15 so far during the day. The stock lost as much as 2.89% at the day's low of Rs 134.35 so far during the day. The stock had hit a 52-week low of Rs 90.40 on 29 February 2016. The stock had hit a 52-week high of Rs 219.70 on 27 October 2015. The stock had underperformed the market over the past one month till 6 September 2016, advancing 0.44% compared with 3.2% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 17.2% as against Sensex's 8.22% rise.

The large-cap company has equity capital of Rs 489.52 crore. Face value per share is Rs 2.

Bharat Heavy Electricals' (Bhel) order backlog stood at Rs 1.08 lakh crore as on 30 June 2016.

Separately, Bhel during market hours today, 7 September 2016 said that India Ratings and Research has downgraded its Long-Term Issuer rating on the company to 'IND AA+' from 'IND AAA'. Bhel said that India Ratings and Research has, simultaneously, removed all ratings from Rating Watch Negative (RWN) and a Negative Outlook has been assigned to all Long-term ratings. The removal of RWN follows the completion of the ongoing evaluation of Bhel's key business parameters. According to statement issued by India Ratings and Research, decline in Bhel's revenue for the period from FY 2013 to FY 2016, slow moving projects in the company's order book, EBITDA (earnings before interest, taxes, depreciation and amortization) margins turning negative and high debtors days led to downgrade of the company's ratings.

State-run Bhel is an integrated power plant equipment manufacturer. It is one of the largest engineering and manufacturing companies in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for core sectors of the economy, viz. power, transmission, industry, railways, renewable energy, oil & gas, water and defence. The Government of India currently holds 63.06% stake in Bhel (as per the shareholding pattern as on 30 June 2016).

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