Shares of state-run BHEL fell sharply by 8 per cent in morning trade after the company’s June quarter earnings came in below market expectations.
BHEL’s stock slumped 7.73 per cent to Rs. 206.40 on the BSE. At the NSE, the scrip tumbled 8 per cent to Rs. 206.20.
The stock was the worst performer among the blue-chips on both Sensex and Nifty during the early trade.
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“BHEL’s numbers were significantly below expectations,” said Sanjeev Zarbade, vice president - private client group research, Kotak Securities.
BHEL’s net profit shrunk 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 had said in a filing to the stock exchanges on Tuesday.
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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.