BHEL reported nearly 10% decline in net profit at Rs1,274.5 crore for the second quarter
Mumbai: Shares of state-run BHEL on Monday fell over 6% wiping off Rs3,672 crore in investor wealth after the state-owned company reported nearly 10% decline in net profit for the quarter ended September 2012, reports PTI.
Following the disappointing results, shares of BHEL fell by 6.64% to finally settle at Rs227.25, down 6.19% on the BSE. At NSE, the scrip closed at Rs226.50, down 6.58%.
In the process, the market capitalisation of the company plunged by Rs3,672 crore to Rs55,621 crore.
"The stock was hammered not only because the results were below street expectation, but also the outlook at least for next 1-2 years is weak," Nagji K Rita, CMD, Inventure Growth & Securities said.
According to Rikesh Parikh, Vice President, Markets Strategy and Equities, Motilal Oswal Securities: "The key concern of erosion in the company's order backlog remains."
BHEL today reported nearly 10% decline in net profit at Rs1,274.45 crore for the second quarter ended September 2012. The power equipment major had net profit of Rs1,412.03 crore in the July-September quarter of last financial year.
BHEL said that its income from operations in the July-September quarter grew a little over 2% at Rs11,009.28 crore, from Rs10,758.08 crore in the same period last fiscal.
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