The stock yesterday tanked over 6% after it announced a set of very disappointing numbers for Q2FY13. And the main concern is not just the poor numbers for Q2 but a very worrying order book. At the end of Q1FY13, the company had an order book at Rs.1,32,900 crore  and now at end of Q2Fy13, the company has stated that its order book is at Rs.1,22,300 crore. So instead of a rise, there has been a fall of Rs.10,600 crore worth order. So was that on account of cancellations?  Clearly, external circumstances like land, gas and coal availability, environmental clearances have prevented implementation of projects which in turn has affected the order book. The falling order book also indicates that investment is not happening and that is a big concern. The power sector, its biggest client remains mired in deep trouble given coal linkage issues and till that gets sorted out, there is really no way out for BHEL.

The company posted a YoY 10% drop in net profit at Rs.1274 crore and topline was flat at Rs.10400 crore. It will take a while for the glut to clear in the economy. The Govt has only initiated the reform process and it will take a while for it to all get cleared. So even Q3, in that sense does not look particularly good. Yes, this fiscal, might not go down too well for BHEL.