Bhel Q1 results: Loss widens 114% to ₹455 crore as power demand dips

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India's state-owned Bharat Heavy Electricals Ltd (BHEL) reported a wider first-quarter loss on Wednesday, hurt by lower demand for its power and industrial equipment products and rising costs.

The manufacturer's net loss more than doubled to ₹455 crore ($52 million) in the quarter ended June 30, from ₹213 crore a year earlier.

India's power demand fell 1.8per cent year-on-year to 481 billion units in the April-June period as early monsoons hampered construction activity and reduced air conditioning requirements.

That led to a slowdown in project orders for power equipment. BHEL's revenue from that segment, its biggest, fell 5.6 per cent to ₹3,899 crore.

The company, which accounts for 55per cent of India's total installed power generation capacity, said its revenue from operations was nearly flat at ₹5,487 crore in the quarter.

BHEL's expenses, however, rose nearly 7per cent to ₹6,280 crore, driven by a jump of 10.8per cent in the cost of raw materials and services.

BHEL's rival, Tata Power missed quarterly profit estimates, weighed down by weak electricity demand.

Shares of the company closed 3.4per cent lower, ahead of results.