New Delhi: State-run BHEL's net profit shrunk to Rs 193.50 crore for the quarter ended June 30, 2014 manily due to drop in sales from power and industry segments.
The company had reported a net profit of Rs 465.43 crore during the same period, last fiscal, BHEL said in a filing to the stock exchanges.
The company's income from operations was down to Rs 5,067.59 crore from Rs 6,352.55 crore in the corresponding quarter last fiscal.
BHEL's revenues from power sector plummeted to Rs 4,144.16 crore from Rs 5,378.60 crore and those from the industry segment to Rs 1,133.05 crore from Rs 1,292.60 crore, respectively.
"BHEL's numbers were significantly below expectations. We continue to remain negative on the stock," Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities said in a statement.
Government has identified some sick PSUs which will be either merged or taken over by SAIL, BHEL and HMT.
The three sick PSUs are Praga Tools Ltd, Bharat Heavy Plates Vessels Lts and Bharat Refractories Ltd.
Meanwhile, BHEL alongwith five other PSUs will build the world?s largest 4,000 MW ultra mega solar power project in Rajasthan.
The JV will have equity of 26 percent from BHEL, 23 percent from SECI (Solar Energy Corporation of India), 16 percent from SSL (Sambhar Salt Ltd), 16 percent from PGCIL, 16 percent from SJVNL (Satluj Jal Vidyut Nigam) and 3 percent from REIL (Rajasthan Electronics & Instruments Limited).
The project will come up on surplus land available with SSL in Sambhar, Rajasthan.
The equipment will be supplied by BHEL, power evacuation infrastructure will be put up by PGICL, sale of electricity would be done by SECI, operation and maintenance by REIL and project management by SJVNL. The project will be developed in different phases in 7 to 8 years.
Shares of BHEL closed at Rs 223.70, up 0.79 percent on the BSE.
