India's BHEL posts Q4 profit fall on higher expenses

BENGALURU (Reuters) - India's state-owned Bharat Heavy Electricals Ltd (BHEL) reported a fall in fourth-quarter profit on Tuesday, as higher expenses outpaced soaring domestic demand for power and industrial products.

The company, which makes power and industrial equipment, reported a 25% fall in profit for the three months ended March 31 to 4.84 billion rupees (about $58 million).

It had reported three straight quarters of losses till the December quarter.

The company's total expenses rose more than 5% to 77.94 billion rupees.

Income from operations, however, rose around 1% as India experienced heightened temperatures in the quarter, helping domestic electricity generation grow at an average of about 8% annually, following the pandemic year of 2020/21.

BHEL accounts for 53% of the country's total installed power generation capacity, according to government data.

In addition, industrial activity in the country also soared on higher government spending ahead of the ongoing national elections.

Rival Tata Power reported a rise in fourth-quarter profit on strong demand, while peer Siemens also posted a rise in its profit on strong energy and smart infrastructure sectors.

($1 = 83.2860 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Janane Venkatraman)