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Bhel shares fall 6% as Q1 net profit plunges 82% to Rs.34 crore

New Delhi: State-run power equipment maker Bharat Heavy Electricals Ltd (Bhel) on Friday reported a 82.48% plunge in stand-alone net profit at Rs.33.89 crore for the quarter ended 30 June, due to lower sales.

The public sector firm had reported a net profit of Rs.193.50 crore in the corresponding quarter of the previous fiscal year, Bhel said in a regulatory filing.

Net sales during the quarter were at Rs.4,280.76 crore, registering a decline of 15.5%.

The company’s net sales in the year-ago period stood at Rs.5,067.59 crore. Bhel’s revenue from the power sector declined to Rs.3,357.13 crore during the quarter from Rs.4,144.16 crore in the year-ago period.

“The company has an outstanding order book position of about Rs.1,16,200 crore at the end of Quarter 1/2015-16,” the company said.

Bhel had signed three agreements with Kazakh companies during Prime Minister Narendra Modi’s recent visit to the country.

The first pact was signed with JSC Samruk Energy, the national power utility of Kazakhstan which has a major share in Kazakh’s power sector, Bhel said in a statement last month.

Shares of the company declined by nearly 6%, wiping out Rs.4,014 crore from its market valuation. Reacting to the numbers, shares of the company dipped 5.81% to settle at Rs.265.80 on BSE.

During the day, the shares slipped 10.4% to Rs.252.85. On the NSE, the stock tumbled 5.77% to Rs.266.15 at close. The stock was the top loser among the blue-chips on both Sensex and Nifty.

The company’s market valuation fell by Rs.4,013.79 crore to Rs.65,057.21 crore.

In terms of volume, 25.42 lakh shares of the company changed hands at BSE and over two crore shares were traded at the NSE during the day.

“Shares of Bhel corrected sharply after the company’s profit tanked almost 83% year-on-year,” said Hiren Dhakan, associate fund manager at Bonanza Portfolio.