State-run Bharat Heavy Electricals (Bhel) on Saturday reported a net loss of Rs 1,534.1 crore on a standalone basis for the three months to March, against a profit of Rs 675.9 crore reported in the corresponding quarter a year ago.
The company’s revenue fell nearly 52% year-on year (y-o-y) to Rs 5,049.3 crore, mainly due to the disruptions caused by the countrywide lockdown.
The company pegged the impact of the coronavirus crisis on FY20 revenue at Rs 4,000 crore. Bhel reported a loss of Rs 1,472.9 crore for FY20, swinging from a profit of Rs 1,208.7 crore in the preceding fiscal. In the final quarter, the company’s manufacturing facilities and on-site project executions were inoperative from March 23, taking a toll on its revenues. Bhel’s board did not recommend any final dividend amount for FY20.
The engineering and capital-goods firm spent Rs 141 crore on finance cost in Q4FY20, up 46% y-o-y. The Rs 825 crore of tax expense in the quarter was also 37.5% higher than the same period last year. Given the current stressed situation of the country’s power sector, the company’s revenue from the power industry—its main source of income—fell 61% to Rs 3,174.7 crore in the quarter.
With power demand slowing down, Bhel wants to utilise the opportunity emerging from the coronavirus aftermath, where global firms are seen to adopt the strategy to decentralise manufacturing to mitigate disruption risks associated with concentrated and localised operations.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.