BHEL sales decline for first time in a decade; down 4%

For the first time in a decade, India’s biggest power utility manufacturer has reported bleak results prompting analysts to put a sell recommendation to their clients. However, the management remains cautiously upbeat Bharat Heavy Electricals (BHEL) has been in a bad shape for the past two-three years. However, when it announced its third quarter results for the period ended December 2012, many pundits and market watchers were in for a rude shock. BHEL had reported its first quarterly revenue decline, the first time in a decade. Net sales, for the quarter ended December 2012 declined 4% year-on-year (y-o-y) to Rs10,219.71 crore, when compared to the same period last year. Operating profit plummeted 20% y-o-y to Rs1,634.06 crore, for the reporting quarter. And the same story followed for its net profit which crashed 17% to Rs1,185.85 crore. This is a worrying trend for one of India’s largest power utilities manufacturer. Several analysts are bearish and have already advised clients to sell the scrip. ref: http://www.moneylife.in/article/bhel-sales-decline-for-first-time-in-a-decade-down-4/31114.html