InvestorQ : Why did BHEL report such a heavy loss in the Mar-20 quarter and how do you see the prospects of the stock?
Debbie Mascarenhas made post

Why did BHEL report such a heavy loss in the Mar-20 quarter and how do you see the prospects of the stock?

Answer
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Crowny Pinto answered.
3 months ago


BHEL reported net loss of Rs.1534 crore in the Mar-20 quarter as against a profit of Rs.676 crore in the Mar-19 quarter. Total income in the fourth quarter almost halved to Rs.5198 crore in the Mar-20 quarter. Normally, the March quarter is considered to be an execution-heavy quarter for capital goods companies but deliveries were badly hit by the Covid-19 lockdown from the second half of March onwards. BHEL also reported that manufacturing facilities and site operations were not operating from March 23 which accentuated the pre-COVID problems already existing. The company has not recommended any dividend for the fiscal year 2019-20 due to huge production losses in the light of COVID-19.