BHEL reports 17 fall in net profit

BHEL reports 17 fall in net profitIndia's biggest maker of power-plant equipment, Bharat Heavy Electricals Ltd. (BHEL) has reported worse than expected 17 per cent fall in net profit during the third quarter of the financial year.

The company saw its profit fall faster than anticipated as more customers delayed their orders during the quarter. The net income of BHEL has fallen to the level of 11.8 billion rupees or about $221 million during the third quarter of the financial year from October to December, 2012 compared to 14.3 billion rupees recorded in the third quarter of the previous financial year.

Analysts had expected the company to record a net profit of 13.5 billion rupees. The sales of the power plant equipment maker fell 5 per cent to 100.4 billion rupees. BHEL's revenues from power-generation equipment business that accounts for 75 per cent of Bharat Heavy's sales, fell 5 per cent during the quarter.

Experts say that the several orders were delayed by the customers of the company due to reasons like non-availability of the land difficulties in procuring equity funding by promoters. Issues relating to coal prices, power- purchase agreements and the state distribution networks have also affected power generation projects in the country.