Shares of Bharat Heavy Electrical Ltd (BHEL) dipped over 12.8% on the BSE to Rs 133.65, their lowest since 25 January 2017, after the company’s standalone net profit declined by 57% to Rs 215.55 crore in the fourth quarter ending March 31, 2017, due to lower income and provisions for higher wages. The company had reported a standalone net profit of Rs 505.71 crore in the corresponding quarter of the previous financial year.
According to the company’s statement in a BSE filing, the total standalone income decreased to Rs 10,302.79 crore in the quarter under review from Rs 10,870.49 crore year ago. The standalone net profit of the company was Rs 495.86 crore in 2016-17 versus the reported loss of Rs 709.60 crore in 2015-16. The standalone total income of the company rose to Rs 30,201.39 crore in 2016-17 from Rs 28,136.09 crore in 2015-16. BHEL has made a provision of Rs 961 crore for 2016-17 based on the estimates as per third pay revision committee recommendation in view of pending finalisation of agreement for wage/salary structure due from January 1, 2017. The company had an outstanding order book of Rs 1,05,200 crore as at the end of 2016-17.
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“During the year, BHEL recorded a turnover of Rs 28,840 crore, up 11 per cent over the previous year, after reversing the trend of negative topline growth prevailing for the last three years,” BHEL Chairman and Managing Director Atul Sobti told PTI.
Sobti said, “The company also returned to profitability with a profit before tax (PBT) of Rs 628 crore as compared to a loss of Rs 1,164 crore (IND-AS restated) in the last fiscal. Net profit stood at Rs 496 crore, against a net loss of Rs 710 crore (IND-AS restated) in the previous year.”
At its meeting held on Monday, the board recommended a final dividend Rs 0.78 per share of face value of Rs 2 each for 2016-17, in addition to the interim dividend of Rs 0.80 already paid. The company said that the final dividend, if approved in the Annual General Meeting shall be paid October 10, 2017.