BHEL surges 9% as Q4 profit rises more than double

The stock rallied 9% to Rs 86.45 on the BSE in noon deal after the company reported net profit of Rs 4.57 billion in Q4FY18 against Rs 2.16 billion in previous year quarter.

SI Reporter  |  Mumbai 

Bhel
Bhel

Shares of Bharat Heavy Electricals Limited (BHEL) have moved higher by 9% to Rs 86.45 per share on the in noon deal after the state-owned company reported a more than double standalone net profit of Rs 4.57 billion in March quarter (Q4FY18). It had a profit of Rs 2.16 billion in the same quarter last fiscal.

Operational income during the quarter under review however remained flat at Rs 98.29 billion against Rs 98.74 billion in the corresponding quarter of previous year. Total expenditure of the company declined 9.9% to Rs 92.01 billion from Rs 102.08 billion during the quarter.

However, the company's net profit and operational income were below an average analyst estimate of Rs 4.76 billion and Rs 110.11 billion, respectively.

“Prudent strategies of garnering higher market share in a shrunken and highly competitive business environment enabled to book orders worth Rs 409.32 billion in FY 2017-18. Significantly, this is a quantum jump of 74% over FY 2016-17. The orders comprise of Rs 333.42 billion in the Power segment and Rs75.90 billion in the industry and overseas segments combined. Significantly, has maintained its leadership position with 100% market share in the conventional thermal power equipment business. With this, has ended the year with a total order book of over Rs 1.18 trillion-highest in last five years,” the company said in a press release.

The board has recommended final dividend @ 51% (Rs 1.02 per share) on the paid up share capital of the company for FY 2017-18.

At 12:45 pm; the stock was trading 8% higher at Rs 85.30 on the BSE, as compared to 0.21% decline in the S&P Sensex. The trading volumes on the counter jumped more than four-fold with a combined 31.25 million shares changed hands on the and so far.


First Published: Tue, May 29 2018. 12:47 IST