BHEL shares fall after disappointing FY14 provisional earnings data

Apr 07 2014, 15:31 IST
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Bhel's net profit on provisional basis for the year ending March 31, 2014, stood at Rs 3,228 crore. (AP) Bhel's net profit on provisional basis for the year ending March 31, 2014, stood at Rs 3,228 crore. (AP)
SummaryBhel's net profit on provisional basis for the year ending March 31, 2014, stood at Rs 3,228 crore.

Shares of capital goods player Bharat Heavy Electricals Ltd (BHEL) fell nearly 4% intraday on the BSE after the company on Saturday said that its net profit for FY14 on provisional basis had fallen more than 50%.

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Bhel's net profit on provisional basis for the year ending March 31, 2014, stood at Rs 3,228 crore. According to experts, the numbers indicate Bhel's margins must have taken a hit. "BHEL over the weekend declared FY14 provisional earnings, which at INR32.3bn, were down 51% and 16% below our and consensus estimates. However, this is despite gross sales at INR404bn (down 20% y/y), only 5% below HSBCe. This suggests that margins/other income must have taken a beating. We would not be surprised if BHEL has taken write-offs on its receivables, which have been on an uptrend. New orders in FY14e at Rs 280 bn were also 3% below HSBCe," HSBC said in a report.

The scrip was trading 3.64% lower at Rs 177.25 at 2.00 pm IST on the BSE Sensex.

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