Banking & FinanceEnergySectorsStock Market

BHEL Reported Loss in Q3 Resulted Negatively in the Stock Market

Sharing is caring!

State-run BHEL tanked over 8 per cent on Monday. The two factors that impacted this stock are the disinvestment report and also over a consolidated net loss of Rs 217.86 crore for the October-December quarter.

It opened at Rs 41.05 per piece on February 8, and went up to Rs 41.40 per share. Before it finally dropped to a low of Rs 39.55 at BSE and NSE.

At 12.18 pm, BHEL share stood at Rs 40 per piece. On Friday closing, BHEL share stood at Rs 43.55.

The engineering firm on Saturday reported a consolidated net loss of Rs 217.86 crore for the October-December quarter due to lower revenues. The consolidated net profit of the firm was Rs 161.81 crore in the quarter ended on December 31, 2019, a BSE filing stated. Total income of the company dipped to Rs 4,532.39 crore in the quarter from Rs 5,827.74 crore in the same period a year ago.

According to Motilal Oswal Institutional Equities, BHEL continues to struggle with a weak ordering environment in the power sector, high receivables, and huge FY20 employee cost (~25% of sales). “In FY20, working capital deteriorated to 99 per cent of sales from 65 per cent in FY19, weighed by a higher inventory and receivables, and poor execution.”

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: