State-run power equipment maker Bhel reported 54.21 per cent jump in net profit at Rs 77.77 crore in April-June period mainly because of positive topline (turnover) growth after three-and-half years.
The company posted a net profit of Rs 50.43 crore in the June quarter of last fiscal, Bhel said in a regulatory filing. Total income increased from Rs 4,858.95 crore to Rs 5,871.78 crore for the quarter ended June 30, 2016.
Bhel’s turnover has shown a double-digit growth of 29 per cent compared to the corresponding period in the previous year. The company has beaten street expectations by reversing the trend of negative topline growth prevailing for the last 14 straight quarters.
Its total sales or income from operations rose to Rs 5721.19 crore in the first quarter from Rs 4421.01 crore in the year-ago period. Attributing the reversal in the trend of negative growth to accelerated execution, Bhel Chairman and MD Atul Sobti said specific steps of expeditious execution and enhanced order booking have been initiated by the company. Bhel’s revenue from power segment business increased to Rs 4335.49 crore in the first quarter compared to Rs 3289.78 crore a year ago.
The revenue from industry segment too rose to Rs 1385.70 crore in the first quarter from Rs 1131.23 crore in the same period a year ago. The company has an outstanding order book position of Rs 1,08,000 crore at the end of first quarter of this fiscal.
Earlier, Bhel had commissioned the fourth and last unit of the 4x40 mw Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. A run-of-the-river greenfield project located in Darjeeling district of West Bengal, Teesta HEP has been set up by NHPC Ltd, on the River Teesta, Bhel had said in a release. According to the statement, power generation from the Teesta project will result in reduction of green-house gas emissions and will help in achieving a low carbon development path for the state as well as the nation.
Shares surge 16%
Shares of the power equipment maker Bhelon Wednesday soared nearly 16 per cent, adding Rs 5,250.65 crore to its market valuation, after the company reported a 54.21 per cent jump in net profit for the April-June quarter. The stock surged 15.50 per cent to end at Rs 159.80 on the BSE.
Intra-day, the shares advanced by 16.66 per cent to Rs 161.40. On NSE, the company’s stock jumped 15.56 per cent to close at Rs 159.65. 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. On the volume front, 84.36 lakh shares of the company were traded on the BSE and over 7 crore units changed hands on the NSE during the day.