The Hindu : Business : BHEL plans expansion as profits rise

Online edition of India's National Newspaper
Saturday, Apr 02, 2005

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Business

BHEL plans expansion as profits rise

By Our Special Correspondent

— Photo: Ramesh Sharma

The Chairman and Managing Director of BHEL, Ashok K. Puri (right), with the Director, Ramji Rai, addressing a press conference in New Delhi on Friday. — Photo: Ramesh Sharma

NEW DELHI, APRIL1. The Bharat Heavy Electricals Limited today announced a 52 per cent rise in net profit to Rs. 1,002 crores in 2004-05 from Rs. 658 crores in the previous fiscal along with a 21 per cent rise in turnover. For the first time, the company's turnover has crossed the Rs. 10,000-crore mark, up from Rs. 8,662 crores last year.

Giving details of the company's performance at a press conference here today, the Chairman-cum-Managing Director, Ashok K. Puri, said plans were under way to raise the manufacturing capacity from 6,000 MW now to 10,000 MW by 2007 with an investment of Rs. 1,000 crores.

As for the order book position, he said the BHEL had secured orders worth Rs. 18,016 crores from the intensively competitive domestic and oversease markets. This brings the total outstanding order book to Rs. 31,800 crores.

Mr. Puri said the company's improved performance was due to strategic management with an improvement in operational efficiency, benchmarking against international standards, prudent financial management and upgrading manufacturing facilities. With power equipment being the core business, he pointed to the power sector reforms and huge plans for capacity addition during the Tenth and Eleventh plans as another reason for the enhanced performance. The country is planning to add 41,110 MW by the end of the Tenth Plan. In addition, he said, policy initiatives had led to an improved investment climate in the infrastructure sector.

He noted that in the power sector alone, the company secured orders worth Rs. 13,458 crores during the year. With the renewed thrust on renovation and modernisation of power plants, the spares and services business bagged record orders worth Rs. 1,283 crores.

The export turnover is estimated at Rs. 2,331 crores, accounting for over 22 per cent of its total turnover of Rs. 10,520 crores during the year.

Besides, it paid an all time high interim equity dividend of 35 per cent. The EPS during the year was Rs. 40.9, an increase of 52 per cent over that achieved in 2003-04.

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