BHEL shares tumble 19% after quarterly earnings

Shares of engineering firm BHEL tumbled 19 per cent on Monday after the company's consolidated net loss widened to Rs 2,699.70 crore in the financial year 2020-21.

The stock declined 17.91 per cent to Rs 62.55 on the BSE.

At the NSE, it tanked 19 per cent to Rs 61.65.

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The earnings were announced post market hours on Friday.

For the quarter ended March, state-owned BHEL's consolidated net loss narrowed to Rs 1,036.32 crore, mainly on the back of higher revenues.

The company's consolidated net loss had stood at Rs 1,532.18 crore in the quarter ended on March 31, 2020, according to a regulatory filing.

Total income during January-March 2021, rose to Rs 7,245.16 crore, from Rs 5,166.64 crore in the year-ago period.

However, in the full financial year 2020-21, the company's consolidated net loss widened to Rs 2,699.70 crore as compared with Rs 1,468.35 crore in 2019-20.

Its total income during 2020-21 dropped to Rs 17,657.11 crore, from Rs 22,027.44 crore in 2019-20.

The nationwide lockdown, consequent to the spread of the Covid-19 pandemic globally, caused disturbance and slowdown in the economic activities. It impacted the group operations during 2020-21, which recouped progressively, the company explained.

Based on internal and external information up to the date of approval of these financial statements, the company expects to recover the carrying amount of its assets, investments, trade receivables, contract assets and inventories, it added.