Bharat Heavy Electrical shares fell as much as 5 per cent on Friday after the state-run electrical equipment maker reported a surprise loss in the July-September quarter. The stock hit its 52-week low post earnings announcement.
BHEL reported a net loss of Rs 205 crore in Q2, mainly on account of rising costs. BHEL's total expenses rose to Rs 6,637 crore against Rs 6,119 crore last year as material costs and other expenses rose significantly.
We are more concerned about the jump in "other" overhead of the company, said Taran Bhanushali of IIFL. The sharp rise in other expenses could be because of provisions for doubtful debt and may not be a recurring item, he added.
BHEL's revenues were ahead of estimates, though on an annual basis they fell to Rs 6,193 crore from Rs 6,319 crore in the corresponding quarter of last fiscal.
BHEL shares closed 1.52 per cent at Rs 191.45 on the NSE as against 0.15 per cent fall in the broader Sensex.
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