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Bhel tumbles as OPM crashes

Capital Market / 09:27 , Jan 30, 2012

Bhel slumped 7.64% to Rs 252.75 at 09:54 IST on BSE after net profit rose 2.1% to Rs 1432.61 crore on 19.2% rise in net sales to Rs 10547.97 crore in Q3 December 2011 over Q3 December 2010 on the back of sharp contraction in operating margin.

The result was announced after market hours on Friday, 27 January 2012.

Meanwhile, the BSE Sensex was down 157.34 points, or 0.91% to 17,076.64

On BSE, 12.37 lakh shares were traded in the counter as against average daily volume of 5.27 lakh shares in the past one quarter.

The stock hit a high of Rs 259.80 and a low of Rs 248.60 so far during the day. The stock had hit a 52-week low of Rs 225 on 20 December 2011. The stock had hit a 52-week high of Rs 463.20 on 27 January 2011.

The large-cap stock had outperformed the market over the past one month till 27 January 2012, surging 13.64% compared with Sensex's 8.57% return. The scrip, however, underperformed the market over the past one quarter, falling 13.57% as against Sensex's 0.32% fall.

India's largest state-run power equipment maker has an equity capital of Rs 489.52 crore. Face value per share is Rs 2.

The OPM tumbled by 360 basis points (bps) to 19.4% from 23% in Q3 December 2010 on account of higher material cost and other expenses.

Bhel's order backlog stood at Rs 146500 crore as on 31 December 2011, lower than order backlog of Rs 161000 crore as on 30 September 2011 and Rs 158000 crore as on 31 December 2010. The company said latest order backlog was reduced to the extent of Rs 5847 crore in Q3 December 2011 as the company has seen one order cancelled during the quarter and few other small orders underwent change in scope. There is no such thing as slow moving orders in the order backlog, the company's management said in a post-result conference call with analyst. Bhel said provision (contractual obligation, LD and bad and doubtful debts) for the quarter has gone up to the extent of Rs 218 crore.

Bhel is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.

 



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