India’s state-owned Bharat Heavy Electricals (BHEL) reported a slightly wider first-quarter loss due to higher expenses, overshadowing the growth in demand for power equipment. This news led to a 1.2% decrease in the company’s share price. For the quarter ending June 30, BHEL posted a net loss of 2.13 billion rupees ($25.44 million), compared to a net loss of 2.12 billion rupees in the same period the previous year.
The company adjusted the previous year’s figures to include expenses of 2.33 billion rupees, covering deferred tax and provisions and write-offs. Over the past four quarters, BHEL’s earnings have been negatively impacted by increasing expenses. This quarter, expenses rose by 9% to 58.75 billion rupees, largely due to a 9.4% increase in the cost of materials and services.
BHEL Reports Wider Q1 Loss Despite Increased Demand for Power Equipment
Despite the rising costs, BHEL saw a nearly 10% increase in revenue from operations, reaching 54.85 billion rupees. This growth was driven by a 4% increase in revenue from the power segment. The April-June quarter saw record highs in India’s electricity generation due to peak summer demand, which in turn boosted orders for power equipment.
BHEL’s industrial business, the company’s second-largest segment, experienced a significant 30% surge in revenue during this period. The financial results of BHEL’s competitors, Tata Power and Siemens, are expected to be released next month, which will provide a broader view of the industry’s performance.
