Bhel closes FY20 on a miserable note; FY21 does not look promising either
It’s not as if investor optimism was running high on Bharat Heavy Electricals Ltd’s (Bhel) stock prior to the March quarter results. The shares had already declined by a third from their year-to-date highs in January. High receivables and execution challenges were key concerns surrounding the state-owned capital goods company.
On Monday, the stock lost another 7% following Bhel’s utterly discouraging numbers announced on Saturday. The standalone reported net loss for the quarter was at ₹1,534 crore. This weighed on its 2019-20 performance, with Bhel reporting a net loss of ₹1,473 crore.
Of course, the March quarter performance shows covid-19’s impact with Bhel’s revenue halving to ₹5,049 crore, lower than estimates. Covid-19 led to around ₹4,000 crore estimated revenue loss.
