BHEL Drops Most In 3 Months After September Quarter Earnings Miss The Mark

State-run Bharat Heavy Electricals Ltd.'s net profit rose for the second straight quarter during July-September, but widely missed analysts' estimates.

The power plant equipment maker's net profit during the previous quarter rose 5.9 percent year-on-year to Rs 115.4 crore, according to its stock exchange filing. This was way below the Rs 158 crore consensus estimate of analysts tracked by Bloomberg.

Revenue fell 3 percent year-on-year to Rs 6,385 crore, weighed down by the industrial segment. This was also below the Rs 6,793-crore estimate. Other income reported a 2.5-fold jump to Rs 485 crore.

Shares of BHEL fell as much as 5.5 percent intraday, the most in nearly three months to Rs 93.55.

Other Key Earnings Highlights

• Revenue power segment fell 4 percent year-on-year to Rs 5,064.66.
• Industry revenue fell 28 percent year-on-year to Rs 1,103.70 crore.
• Other expenses rose 82 percent year-on-year to Rs 1,256.39 crore.
• Finance cost stood at Rs 55 crore versus Rs 5 crore.

The company reported an operating loss of Rs 96 crore compared to an operating income of Rs 154 crore in the same quarter last year. The company's operating margins contracted to a negative of 3.5 percent during the period from 2.5 percent.

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