Lower net revenue from the operations and high expenses steered the fall in quarterly net profit
New Delhi: Public sector engineering major Bharat Heavy Electricals Ltd (BHEL) on Wednesday reported a 36 per cent year-on-year decline in its net profit at Rs 119 crore for the quarter ended September.
Lower net revenue from the operations and high expenses steered the fall in quarterly net profit. The company had reported a profit of Rs 185 crore in the corresponding quarter of previous financial year.
BHEL said its revenue declined by 8 per cent to Rs 6,226 crore for Q2 FY20 against Rs 6,780 crore in Q2 FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 267 crore while EBITDA margin improved at 4.3 per cent against 3.5 per cent year-on-year.
The company spent Rs 4,316 crore for acquiring the materials consumed including erection and engineering in Q2 which is largely similar to the previous quarter spending of Rs 4,388 crore.
BHEL’s diluted and basic earnings per share on the basis of standalone earnings reduced to Rs 0.34 in the July to September quarter of FY20 from Rs 0.50 per equity share from the quarter ended September last year.