BHEL tumbles on posting Q4 net loss of Rs 1532 cr

Bharat Heavy Electricals (BHEL) tumbled 4.45% to Rs 30.15 after the PSU company reported a consolidated net loss of Rs 1532.18 crore in Q4 March 2020 as against net profit of Rs 680.77 crore in Q4 March 2019.

Net sales for Q4 March 2020 tumbled 53.7% to Rs 4594.10 crore from Rs 9912 crore in the corresponding period last year. The result was announced on Saturday, 13 June 2020.

BHEL registered a pre-tax loss of Rs 708.59 crore in Q4 March 2020 compared with pre-tax profit of Rs 1278.35 crore in Q4 March 2019. The firm paid deferred tax of Rs 822.07 crore in Q4 March 2020, higher than deferred tax of Rs 14.29 crore in the corresponding period last year.

BHEL said spread of COVID-19 pandemic temporarily disrupted the operations of the company. The manufacturing facilities and site executions during 23 March 2020 to 31 March 2020 were inoperative, which along with the COVID impact globally (before the lockdown in India) impacted the revenues for the year. BHEL assessed the impact on revenue for the year at around Rs 4000 crore.

On a consolidated basis, BHEL reported a consolidated net loss of Rs 1468.35 crore in fiscal year ending 2020 (FY20) as against a net profit of Rs 1002.43 crore reported in fiscal year ending 2019 (FY19). Net sales for FY20 stood at 20,494.59 crore, declining 30.4% from Rs 29,441.58 posted in FY19.

Meanwhile, the company has declared a dividend of Rs 2 per share.

BHEL is an integrated power plant equipment manufacturer, which is engaged in the designing, engineering, manufacturing, constructing, testing, commissioning and servicing a range of products and services for various sectors, such as power, transmission, industry, transportation, renewable energy, oil and gas, and defense.

As of 31 March 2020, the Government of India holds 63.17% stake in the company.

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