BHEL shares up 5% despite Rs 877-crore provisional loss in FY16

State-run power equipment maker BHEL has reported a provisional loss of Rs 877 crore for the last fiscal. The company recorded a provisional loss of Rs 877 crore in 2015-16 compared with the audited net profit of Rs 1,419 crore in the previous fiscal (2014-15).

Despite this, the company's stock went up 5.77% on the BSE intraday, and closed the day's trading session at Rs 119.30, up Rs 5.30 or 4.65% from Wednesday's close.

This is because according to the company, it booked new orders worth Rs 43,727 crore, up 41.9% from Rs 30,814 crore in the previous fiscal. This is the highest order booking in the last five years for the company.

The company also recorded the highest-ever power generation capacity addition of 15 GW during the last fiscal.

The company's turnover was Rs 26,702 crore in the last fiscal as against Rs 30,947 crore in the preceding fiscal.

The company's loss before tax was estimated at Rs 1,440 crore last fiscal compared with the profit before tax of Rs 2,140 crore in 2014-15.

"The performance during the year has been impacted mainly due to continued subdued business environment, resulting in a reduced level of operations and non-lifting of hold in most of the stranded projects," it said.

It further said, the company's continued focus on cash realisation during the year has resulted in a cash surplus situation. The rising trend of debtors has also been arrested.