Shares of BHEL today dropped over 6 per cent wiping off Rs 3,672 crore in investor wealth after the state-owned company reported nearly 10 per cent decline in net profit for the quarter ended September 30, 2012.
Following the disappointing results, shares of BHEL fell by 6.64 per cent to finally settle at Rs 227.25, down 6.19 per cent on the BSE. At NSE, the scrip closed at Rs 226.50, down 6.58 per cent.
In the process, the market capitalisation of the company plunged by Rs 3,672 crore to Rs 55,621 crore.
"The stock was hammered not only because the results were below street expectation, but also the outlook at least for next 1-2 years is weak," Nagji K Rita, CMD, Inventure Growth & Securities said.
According to Rikesh Parikh, Vice President, Markets Strategy and Equities, Motilal Oswal Securities: "The key concern of erosion in the company's order backlog remains."
BHEL today reported nearly 10 per cent decline in net profit at Rs 1,274.45 crore for the second quarter ended September 30, 2012. The power equipment major had net profit of Rs 1,412.03 crore in the July-September quarter of last financial year.
BHEL said that its income from operations in the July-September quarter grew a little over 2 per cent at Rs 11,009.28 crore, from Rs 10,758.08 crore in the same period last fiscal.