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Bhel net dips

Under pressure

New Delhi, April 5 (PTI): Bharat Heavy Electricals’ net profit more than halved to Rs 3,228 crore in the previous financial year because of low volumes and challenges in the domestic power sector.

The power equipment major had posted a net profit of Rs 6,615 crore in 2012-13, Bhel said today.

India’s power sector has been badly hit by shortages of coal and gas supplies, delays in environmental approvals for power and mining projects and drying up of funding — severely denting the demand for equipment.

Bhel’s turnover declined to Rs 40,366 crore from Rs 50,156 crore in 2012-13, a regulatory filing on its provisional earnings for the year ended March 31, 2014 said.

“Profit impact is due to low volumes. Certain ongoing projects have got impacted as the Indian power sector continues to be besieged with issues relating to fund constraints, land acquisition, clearances and coal linkages,” Bhel said.

The power and industrial market segments continued to witness fewer project finalisations, the company said.

Order inflows fell to Rs 28,007 crore in the year ended March 2014 from Rs 31,650 crore in 2012-13.

 
 
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