BHEL stock crashes 8 percent after Apr-Jun quarter net profit plunges 83%

Shares of power equipment company BHEL slumped nearly 8 percent in mid-noon trades, after the government-controlled firm reported a steep 83 percent drop in net profit in the first quarter ended June 30, which was way below analysts’ expectations. At 2.05 pm, BHEL shares were traded at Rs 259.80 on BSE, down nearly 8 percent from previous close. Over 10.5 lakh shares changed hands on BSE against two-week average of Rs 2.6 lakh shares. [caption id=“attachment_2383118” align=“alignleft” width=“380”] Reuters[/caption] The slump in share prices weighed down heavily on the BSE Power index, which under-performed the market falling 1.4 percent to 2,064.60 against 0.2 percent fall in Sensex at 28,232.44. Announcing its first quarter earnings, BHEL reported a 83 percent drop in net profit at Rs 33.9 crore in the quarter ended June 30 as against net profit of Rs 194 crore recorded in the same quarter a year ago. The company’s revenue during the quarter under review also reported a de-growth, falling 15.5 percent year-on-year to Rs 4,280.80 crore over Rs 5,068 crore a year ago. The CNBC-TV18 poll had estimated BHEL’s profit at Rs 217 crore on revenue of Rs 5,181 crore for the quarter.