BHEL reports 34.2% fall in profit as higher material costs weigh
India’s state-owned Bharat Heavy Electricals Ltd reported a 34.2% fall in quarterly profit on Friday, hurt by a rise in total expenses despite the surging power demand in the country. Standalone net profit fell to 5.98 billion Indian rupees ($72.4 million) for the fourth quarter ended Mar. 31, from 9.09 billion rupees a year earlier, the company said in an exchange filing. Total expenses rose 5.4% due to a sharp rise in input costs led by raw materials that had gone up 23.9% year-on-year.
Power generation equipment manufacturer BHEL benefits from the rising demand of electricity in the country as, according to the company’s data, it has nearly 57% share in India’s total coal-based power generation.
