BGR Q1 net profit down 33%

CHENNAI: Chennai-based power sector engineering company BGR Energy Systems' first quarter net profit fell 33%, as the order inflows continued to be weak.

BGR Energy, which has a joint venture with Hitachi for super-critical boilers, posted a net profit of just over Rs 33 crore compared to about Rs 50 crore in the same quarter last year. Net sales fell over 16% to Rs 610 crore from 731 crore.

The company's revenue from the construction and EPC segment declined to Rs 568 crore from Rs 674 crore while that of capital goods segment fell to Rs 42 crore from Rs 86 crore.

Analysts are bearish about the prospects of the capital goods segment due to lower order flows and aggressive bidding that are hurting margins.