Shares in government owned Bharat Heavy Electricals Ltd (BHEL) fell a huge 7 per cent after the company's net profits slumped for Q1 2014. The stock was last trading at Rs 207, down 7.5 per cent from Tuesday's close.
The company's net profits fell to to Rs 193.50 crore for the quarter ended June 30, 2014 mainly due to drop in sales from power and industry segments.
The company had reported a net profit of Rs 465.43 crore during the same period, last fiscal, BHEL said in a filing to the stock exchanges.
The company's income from operations was down to Rs 5,067.59 crore from Rs 6,352.55 crore in the corresponding quarter last fiscal.
BHEL's revenues from power sector plummeted to Rs 4,144.16 crore from Rs 5,378.60 crore and those from the industry segment to Rs 1,133.05 crore from Rs 1,292.60 crore, respectively.
"BHEL's numbers were significantly below expectations. We continue to remain negative on the stock," Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities said in a statement.
The three sick PSUs are Praga Tools Ltd, Bharat Heavy Plates Vessels Lts and Bharat Refractories Ltd.
Meanwhile, BHEL alongwith five other PSUs will build the world's largest 4,000 MW ultra mega solar power project in Rajasthan.
With inputs from PTI