Mumbai, Aug 5 (IANS): The share price of government-run Bharat Heavy Electricals Ltd (BHEL) crashed nearly 20 percent Monday after the company posted 49 percent drop in quarterly profit due to lower sales.

The company's market value was eroded by nearly Rs.7,000 crore as a result of the single-day drop in the scrip price.

The state-run power equipment maker closed 19.08 percent down at Rs.120.90 after slumping to a low of Rs.120.05 in the intra-day.

The company's market capitalisation has declined by Rs.6,976 crore to Rs.29,591 crore.

BHEL's share price crashed after it announced disappointing earnings due to lower sales. The company Saturday reported Rs.465.43 crore profit for the quarter ended June 30 as compared to Rs.920.90 crore recorded in the corresponding period of last year.

The company's sales slumped to Rs.6,352.55 crore during the quarter under review from Rs.8,326.24 crore recorded in same quarter of 2012-13.

"BHEL reported a disappointing performance, with top-line and bottom-line coming in below our estimates as well as street expectations," Angel Broking said in a report.

"Given the strong competition (domestic as well as international), declining order book, and a weak capex cycle, we expect BHEL's profit, margin and return on equity to decline from the current level," it said.