Shares of state-owned power equipment maker Bharat Heavy Electricals Ltd (Bhel) zoomed 15% on Wednesday as its June quarter results beat Street forecasts. But ground realities have hardly changed to warrant such euphoria and there is more risk visible ahead than reward. What swept investors off their feet is the reported Rs.71 crore operating profit, when forecasts for the quarter ranged from a loss of Rs.100-400 crore. In any case, the 29% revenue growth from a year ago was heartening, considering that in the March quarter, revenue had contracted by 21%. Besides, it is known that Bhel has not been able to get significant orders for several quarters.

Source: Mint September 07, 2016 19:41 UTC