State-owned equipment manufacturing giant Bharat Heavy Electricals Limited (BHEL) on Monday reported a nearly 10% year-on-year decline in its net profit at Rs 1,274.5 crore for the second quarter ended September 30.
BHEL had posted a net profit of R1,412 crore during the consecutive quarter previous year.
In a filing to stock exchange, the company said its income from operations grew a little over 2% at Rs 11,009.3 crore from Rs 10,758.1 crore in the year-ago period.
The company's orderbook stands at Rs 1.3 lakh crore.
The fall in profits saw the shares of BHEL dropping over 6%, wiping off Rs 3,672 crore in investor wealth. Shares of BHEL fell by 6.6% to finally settle at Rs 227.3, down 6.2% on the BSE. At NSE, the scrip closed at Rs 226.5, down 6.6%.
"The key concern of erosion in the company's order backlog remains," said Rikesh Parikh, vice-president, Markets Strategy and Equities, Motilal Oswal Securities.