BGR Energy bags EPC contract worth Rs 1698cr; stock up 3.6%

BGR Energy Systems has bagged EPC contract worth Rs 1,698 crore, reports CNBC-TV18.

The company has reported profit down by nearly 33% in the second quarter even as net sales fell 32% year-on-year. Speaking to CNBC-TV18, Shankaralingam, Managing Director, BGR Energy Systems says that the revenue loss was a one-off due to the extended monsoon. He expects performance to bounce back going ahead towards Q3 and Q4.

Analysts had expected topline erosion due to high base effect last year and a dry spell of order booking over the past few quarters. Increased interest costs on the back of high levels of working capital debt were also expected to drag bottomline down.

Shankaralingam says that he hopes interest cost would come down by end of Q3FY12.