UPDATE: BHEL shares tank over 6 per cent post disappointing earnings

Shares of state-run Bharat Heavy Electricals Ltd (BHEL) ended over six per cent lower on Wednesday, eroding Rs 3,597.16 crore from its market valuation, after the company's June quarter earnings missed market expectations.

BHEL's scrip tanked 6.57 per cent to settle at Rs 209 on the Bombay Stock Exchange (BSE). During intra-day trading, it tumbled 8.35 per cent to Rs 205.

At the National Stock Exchange (NSE), the stock dropped 6.51 per cent to close the day at Rs 209.60. Due to the dip in the stock, the company's market value fell by Rs 3,597.16 crore to Rs 51,154.84 crore. BHEL was the worst performer among the blue-chips on both Sensex and Nifty.

In terms of volume, 15.13 lakh shares of the company changed hands at the BSE, while over one crore shares were traded at the NSE during the day.

BHEL's numbers were significantly below expectations, said Sanjeev Zarbade, Vice President - Private Client Group Research, Kotak Securities.

The company's net profit shrunk to Rs 193.50 crore for the quarter ended June 30, 2014 due to drop in sales from power and industry segments. The company had reported a net profit of Rs 465.43 crore during the same period last fiscal, BHEL had said in a filing to the stock exchanges on Tuesday.

The company's income from operations was down to Rs 5,067.59 crore from Rs 6,352.55 crore in the corresponding quarter last fiscal.

BHEL's revenue from power sector plummeted to Rs 4,144.16 crore from Rs 5,378.60 crore and those from the industry segment fell to Rs 1,133.05 crore from Rs 1,292.60 crore earlier.