BHEL FY12 profit rises to Rs 6,868 crore, order inflow disappoints
According to Sonal Varma, India Economist at Nomura India, will cut key rates by 0.25 per cent (25 basis points) in April as inflation is likely to come down further.
State run Bharat Heavy Engineering Limited (BHEL) has reported provisional numbers for the fiscal ending March 2012. India's top power equipment maker has reported a net profit of Rs 6,868 crore on revenue of Rs 49,301 crore for the 2011-12 financial year.
Analysts had expected sales at Rs 49,000 crore and profit Rs 6,489.5 crore against. Provisional net profit jumped 14.3% while turnover rose 13.8% in comparison to 2010-11.
Though profits beat Street estimates, order inflow for the year was less than expected. The company reported order inflows of Rs 22,096 crore against expectations of Rs 42,000 crore. BHEL order inflows during 2011-12 were 63.5% lower than the inflows in the previous fiscal year.
Shares of the company traded 1.9% higher at Rs 265.20 on the Bombay Stock Exchange (BSE) at 03.05 pm. The BSE Sensex was up 0.8% at 17,619.
"The company has come up with a record performance under difficult market conditions... we have reported the highest ever turnover and profit," B. Prasada Rao, chairman and managing director of BHEL said.
BHEL will target gross sales of Rs 50,000 crore for fiscal year 2012-2013 in FY13, Rao said.
Meanwhile, the government has decided to put on hold plans to sell a stake in the company. BHEL earlier said it has withdrawn initial papers filed with the capital market regulator for the share sale.
In February, Heavy Industries Minister Praful Patel said the share sale in the power equipment maker may happen in the fiscal year 2012-13 beginning in April. The stake sale, which was approved by the cabinet in 2011, was expected to raise about $1 billion.
(With inputs from Reuters)