BHEL is on a weak wicket today, down almost 1.5% at Rs.252 with an intra day low at Rs.248.40. Its 52-week low is at Rs.173.

There are a couple of news floating around regarding the company and none of them seem to be positive. The first is a “flash news” coming on TV stating that FY15 results might be disappointing due to weak order inflows. And there is another news stating that the company is plagued by some key power project tenders being scrapped.

But this cannot be a ‘surprise or shock’ news as this was very much expected, given its poor performance in Q3FY15. In the third quarter itself, the company’s net profit fell 69% at Rs.213 crore on a 28% drop in net sales at Rs.6078 crore. Its revenue from the power sector saw a steep fall from Rs.7319 crore to Rs.4862 crore. Margins had slumped from 11.4% to 4.7%.

Its 9MFY15 performance was pretty bad with net profit at Rs.531 crore compared to Rs.3461 crore in FY14; so there was no rocket science required to know that FY15 would be extremely disappointing.