Bhel posts net profit of Rs 93 crore in Q3

State-run engineering major Bhel on Tuesday posted a net profit of Rs 93.54 crore for the quarter ended on December 31, 2016, on the back of higher income from power segment.

The company had reported a net loss of Rs 1,084.96 crore for the quarter ended December 31, 2015.

Total income increased to Rs 6,461.22 crore for the quarter ended December 31, 2016, from Rs 5,498.07 crore for the quarter ended December 31, 2015, BHEL said in a BSE filing.

Shares of BHEL soared 4.65 per cent to trade at Rs 150.70 after announcement of the financial results.

"The consistent growth in the first three quarters of his fiscal comes in the wake of the trend of negative topline growth prevailing for the last 14 previous quarters. This has been made possible by a slew of strategic initiatives and cost optimisation measures put in place by the management," BHEL Chairman and Managing Director Atul Sobti said.

For nine months to December 2016, BHEL posted a net profit of Rs 280 crore against a loss of Rs 1,215 crore in the same period of previous year. Revenue grew by 19 per cent to Rs 18,966 crore in the first nine months of 2016-17 fiscal.

"Having achieved the immediate target of regaining growth, the company is now enhancing its focus on maintaining leadership status in the power sector while diversifying in the non-thermal power segment and other new areas," he said.

As part of this, focus is on creating new verticals within the company to capitalise on the massive infrastructure spending by the government, with a special focus on Indian Railways, defence and other industrial products to drive the next wave of growth, he added.

BHEL has also been focusing on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector.