Mayhem Continues, BHEL PAT nosedives by 82%

The state run Power Turbine manufacturer Bharat Heavy Electricals’ (BHEL) pathetic run continued during the first quarter as its net profit tumbled to Rs 34 crore as against the earlier Rs. 193 crore earned during same period last year, indicating a sharp drop of 82%.  The company’s topline also nosedived to Rs 4854 crore during the first quarter as against Rs. 5503 crore earned during Q1FY15, showing a drop of 12%. The numbers put forward by BHEL clearly shows that power sector woes are still in place and activities are still to pick up in the sector on the ground as orders are not picking up at the expected rate, impacting the capital goods companies’ performance. 

More disturbing for BHEL was that company has earned Rs 492 crore of other income during the Q1, as against Rs 196 crore earned during same period last year. It has actually saved the day for the company otherwise it would have been a net loss. Interestingly company posted a net operating loss of 452 crore during Q1 as against Rs 54 crore operating loss during same period last year that itself shows the pathetic state of capital goods company.

Segment wise, the company’s bread and butter power  equipment segment was the biggest dragger as the power segment revenue dropped from Rs 4144 crore earned during quarter ending  June 2014  to just Rs 3357 crore this year, whereas the industry segment somehow saved the day as total revenue from industry segment rose from Rs1133 crore to 1143 crore Q1. The biggest setback came in terms of profit from power segment as its tumbled from Rs 525 crore earned during Q1 last year to just Rs. 216 core in this year.  The Industry segment also got a beating and  dropped to just Rs 2.90 crore as against Rs 39 crore earned last year. As far as the order book is concerned, the company has an outstanding order book of Rs 1,16,200 crore as on June 2015.