Tackling tough market scenario, Bharat Heavy Electricals ltd (BHEl) on Wednesday announced its second quarter financial results. The company posted a net profit of Rs 455.95 crore as compared to Rs 1,274.45 crore in the same quarter last fiscal.
One of the country's largest power equipment manufacturers, BHEl's total income during Q2 FY14 declined to Rs 1,274.45 crore as against Rs 10,692.22 crore in Q2 FY13. However, the figures are not comparable since the second quarter of FY14 also includes the financial results of Heavy Plates and Vessels Plant (HPVP), which has been merged with the company.
Even while the company is facing turbulent tides and slowdown in new orders, in its official statement, BHEl said that its outstanding order book by the end of second quarter stood at Rs 1,02,300 crore. Along with that, company also reported a marginal fall in its financial costs. Company's finance cost fell to Rs 24.66 crore during Q2 FY14 against Rs 25.86 crore in the same quarter last fiscal.
In its official statement, the company said, “Consequent to this, impact of HPVP unit for and up to the quarter ended on September 30, 2013 includes turnover of Rs 16.69 crore and profit before tax (PBT) of Rs (-)191.35 crore. The impact on reserves & surplus is reduction by Rs 311 crore.”