BHEL trips on higher incidental costs

Other expenses, mainly provision for wage hike and project-costs, doubled in Q2

The Bharat Heavy Electricals (BHEL) stock dropped six per cent on Tuesday after it reported an operating loss (excluding other income) in the September quarter (Q2), second in a row. Revenue was Rs 6,297 crore, down nine per cent over a year. Net profit, helped by other income, grew six per cent over a year to Rs 115 crore. Other income was Rs 485 crore, compared to Rs 196 crore a year ago.

The numbers, however, lagged Street expectation significantly, the biggest disappointment on the operational side. The core power (80 per cent