State-run power plant equipment maker BHEL reported a 54.2% jump in its net profit to Rs 77.8 crore for the April-June quarter on the back of growth in power business.
The company had reported a profit of Rs 50.4 crore in the corresponding period a year ago.
For the quarter ended June 30, BHEL’s total income grew by 29.7% to Rs 5,622 crore compared to Rs 4,367 crore a year ago. The company reported a positive growth in its revenue for the first time in over three years. The company also reported a 4% increase in its earnings before interest, taxes, depreciation and amortization (EBITDA) to Rs 320.2 crore against Rs 308.4 crore a year ago.
Revenue from company’s power business increased by 38.1% to Rs 4,335 crore against Rs 3,290 a year ago while its revenue from industry segment too rose to Rs 1,385.70 crore in the first quarter from Rs 1,131.23 crore in the same period a year ago.
The company’s order book stood at Rs 1.08 lakh crore at the end of thefirst quarter. India Ratings and Research has downgraded state-owned BHEL’s long¬term issuer rating to IND AA+ from IND AAA and a negative outlook has been assigned to all long-term ratings.
“Ind¬Ra has downgraded Bharat Heavy Electricals’ (BHEL) long¬term issuer rating to IND AA+ from IND AAA. Simultaneously, all ratings have been removed from Rating Watch Negative (RWN) and a negative outlook has been assigned to all long¬term ratings,” BHEL said in a BSE filing on Wednesday.
The markets reacted to the results positively with the firm’s stock surging 15.50% to end at Rs 159.80 on the BSE. The scrip was the biggest gainer among the 50 Nifty components. The company’s market valuation rose by Rs 5,250.65 crore to Rs 39,112.65 crore.