Bharat Heavy Electricals (BHEL) on Tuesday reported a net profit of Rs 115.4 crore, up 5.9% year-on year, for the three months to September. The firm recorded a revenue of Rs 6,168.4 crore, down 6%, in Q2 FY18. The state-owned company said that the dip in revenue was mainly on the back of delay in clearances of a number of projects, including the 4,000-MW Yadadri Power Project, worth Rs 20,400 crore, in Telangana. While speaking to analysts in a conference call about the quarterly results, BHEL managing director Atul Sobti said the profit figure is the highest achieved in Q2 in the last three years. BHEL recorded an 82% rise in the ‘other expenses’ segment in the quarter, which included a Rs 250-crore one-time provision on account of wage revision. There was also an impact in its receivables in the period as purchase orders are being amended due to GST. However, the company gained about Rs 186 crore in foreign exchange rate fluctuations, contributing to the Rs 485 crore, a 147% rise, in the ‘other income’ category. The firm said it is focussing on material cost reduction. Costs of material consumed in the quarter fell by nearly 13% to Rs 3,490.2 crore. It also mentioned it is eyeing business avenues in the transport sector, similar to the recent order of 30 locomotives from the railways.