The Hindu Business Line : BHEL net down despite strong topline growth

New Delhi, Oct. 24 State-run equipment major Bharat Heavy Electricals Ltd (BHEL) reported an over 10 per cent dip in net profit for the second quarter ended September 30.

The company posted a net profit of Rs 616 crore in the September quarter compared with Rs 688 crore posted in the corresponding period last year. Net sales rose 31 per cent to Rs 5,798 crore (Rs 4,439 crore).

The drop in profits, coming despite a healthy 31 per cent surge in topline growth, was primarily on account of higher raw material and employee costs during the latest quarter.

A one-off gain in the corresponding quarter the previous year was also responsible for the dip in profits this quarter.

The BHEL share dipped nearly 7 per cent on Friday to close at Rs 1,091.75 on the BSE.

According to the data released by the company, raw material consumption jumped 42 per cent to Rs 3,621 crore from Rs 2,543 crore a year ago. Employee costs rose 41 per cent to Rs 890 crore, from Rs 630 crore. Besides, the company said it had got a Rs 129-crore interest income on a tax refund in the second quarter of the previous year.

For the half-year ended September 30, the company reported a net profit of Rs 1,000.18 crore, a 2.42 per cent growth over the year-ago period. Income from operations rose to Rs 10,501.83 crore, from Rs 8,008.88 crore in the year-ago period.

The 52-week high was recorded at Rs 2,925 while the corresponding low was Rs 1,072 a per share.

BHEL, which is targeting a turnover of Rs 45,000 crore by March 2012, has boosted its annual power equipment manufacturing capacity to 10,000 MW from 6,000 MW in December 2007. It plans to have total annual capacity of 15,000 MW by December 2009.

More Stories on : Electrical Goods | Bharat Heavy Electricals Ltd | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page