BHEL shares tumble over 8% on poor Q4 show
NEW DELHI: Shares of Bharat Heavy Electricals (BHEL) tumbled over 8 per cent in Tuesday’s trade after the company reported a 57 per cent drop in net profit for the fourth quarter of last financial year.
The scrip fell 8.31 per cent to hit a low of Rs 140.55 on BSE.
The PSU posted a profit of Rs 216 crore profit for the quarter, compared with Rs 506 crore posted for the corresponding period last year.
BHEL’s standalone revenue for the quarter stood at Rs 9,688 crore, indicating a 7.2 per cent decline year-on-year.
Operational revenue of the company fell 2.4 per cent to Rs 101.58.
“While we retain our thesis on BHEL that balance sheet revival is in sight, we believe the company is on course to see substantial cash flow over the next 2-3 years. A sequential reduction in debtors and order inflow growth, which are key value drivers over 12-15 months, remain key monitorable,” financial firm Edelweiss said in its outlook and valuations report on the stock.
The scrip fell 8.31 per cent to hit a low of Rs 140.55 on BSE.
The PSU posted a profit of Rs 216 crore profit for the quarter, compared with Rs 506 crore posted for the corresponding period last year.
BHEL’s standalone revenue for the quarter stood at Rs 9,688 crore, indicating a 7.2 per cent decline year-on-year.
Operational revenue of the company fell 2.4 per cent to Rs 101.58.
“While we retain our thesis on BHEL that balance sheet revival is in sight, we believe the company is on course to see substantial cash flow over the next 2-3 years. A sequential reduction in debtors and order inflow growth, which are key value drivers over 12-15 months, remain key monitorable,” financial firm Edelweiss said in its outlook and valuations report on the stock.