New Delhi: State-owned BHEL today saw its net profit tumble nearly 73% to Rs 124.84 crore in three months ended September this year as lower revenues from power and industry segments took a toll on its profitability.
Bharat Heavy Electricals Ltd (BHEL), which is currently facing tough business conditions, had a net profit of Rs 455.95 crore in the September quarter last year.
Net sales of the power equipment maker fell to Rs 6,027.58 crore in the second quarter of current fiscal. In the year-ago period, the same stood at Rs 8,819 crore, according to a regulatory filing.
Reflecting tough business conditions, BHEL's revenues from power as well as industry segments declined in the latest quarter under review.
In the 2014 September quarter, power segment saw revenues fall to Rs 4,736.95 crore from Rs 7,576.38 crore in the year-ago period.
Besides, revenues from industry segment dropped to Rs 1,582.36 crore from Rs 1,739.18 crore in the same period a year ago.
In accordance with guidelines in the Companies Act, 2013, the carrying amount of the assets as on April 1, 2014, has been depreciated over the remaining revised useful life of the fixed assets, the filing said.
"Consequently, depreciation for the quarter and half year ended September 30, 2014 is higher by Rs 17.37 crore and Rs 44.31 crore, respectively, and the profit before tax is lower to this extent," it said.
Further, around Rs 35.88 crore (net of deferred tax Rs 18.48 crore) representing the carrying amount of assets with "revised useful life as nil" has been charged to the opening reserves as on April 1, the company said.
BHEL's order book stood at Rs 1,03,700 crore at the end of quarter ended September 2014.
Shares of the company was marginally down at Rs 246.45 apiece in late afternoon trade on the BSE.
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