BHEL slides on reporting Q2 net loss of Rs 552 cr

Bharat Heavy Electricals (BHEL) fell 1.43% to Rs 27.55 after the company reported a consolidated net loss of Rs 552.38 crore in Q2 September 2020 as compared to a net profit of Rs 120.95 crore in Q2 September 2019.

On a consolidated basis, net sales slumped 42.9% to Rs 3,444.31 crore in Q2 September 2020 over Q2 September 2019. Pre-tax loss stood at Rs 733.80 crore in Q2 September 2020 as against a pre-tax profit of Rs 166.88 crore in Q2 September 2019. Current tax expense for the quarter stood at Rs 2.33 crore. The company reported negative EBITDA of Rs 528 crore in Q2 FY21 as against a positive EBITDA of Rs 403 crore in Q2 FY20. The Q2 result was declared after market hours on Friday, 6 November 2020.

The company said that the current business environment remains challenging due to COVID-19 pandemic. The economy is gradually coming back to pre-COVID levels. Capacity utilization levels in various industries like oil & gas, steel is catching up. The expected recovery in the capex cycle is likely to be delayed. Atmanirbhar Bharat initiative with various policy measures is encouraging, the state-owned company said.

The business operations at manufacturing units are resuming to pre COVID-19 levels. Operations have already reached 90% levels at some of the major project sites. However, the availability of workforce remains a challenge at few project sites. The order book position of the company as on 30 September 2020 stood at Rs 1,07,645 crore.

State-run BHEL is engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services to the core sectors of economy. As of 30 September 2020, the Government of India holds 63.17% stake in the company.

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