Date:04/04/2004 URL: http://www.thehindu.com/2004/04/04/stories/2004040400631500.htm

Business

BHEL net up 38 p.c.

By Our Special Correspondent

NEW DELHI, APRIL 3. The public sector Bharat Heavy Electricals Limited (BHEL) has announced that its net profit jumped by 38 per cent to Rs. 615 crores during 2003-04 from Rs. 445 crores in the previous fiscal.

Addressing a press conference the Chairman and Managing Director, H. W. Bhatnagar, said provisional results indicate that the turnover rose by 15 per cent at Rs. 8,610 crores against Rs. 7,482 crores in 2002-03.

Impressive outstanding order position was placed at Rs. 23,650 crores at the end of the year while order inflows were placed at Rs. 16,469 crores against Rs. 11,227 crores, a 46 per cent gain. The profit before tax was placed at Rs. 947 crores against Rs. 802 crores, Mr. Bhatnagar said.

"In tandem with the noticeable upswing in the economy and especially the capital goods sector, BHEL posted a sterling performance with a scintillating double digit growth in its topline, a quantum jump in bottomline, a robust order book and across the board gains in all parameters," marked the year.

The CMD said total export turnover was placed at Rs. 2,087 crores. In line with its strategic plan, BHEL would tap opportunities in EPC and O&M segments and after-market services in the services sector.

Dwelling further on the performance, he said during 2003-04, BHEL bagged a number of orders from the power sector worth Rs. 12,650 crores, including work for Kahalgaon TPS Phase I and Phase II and Sipat TPS of NTPC. In the industrial sector, the company secured orders for Rs. 3,567 crores through sustained efforts for entry into new business areas and better management.

BHEL's international business also performed well with order exports placed at Rs. 232 crores and the company securing orders from Romania, Libya and other nations. Plant load factor of the company's thermal sets rose to 74 per cent, 2 per cent above national average.

The company also entered into a memorandum of understanding with the National Thermal Power Corporation (NTPC) for establishing a joint venture company for undertaking maintenance jobs. It would also look after EPC and IPP jobs where promoters are not interested, he said.

Notwithstanding the failure to secure contracts for NTPC's 660 MW super thermal power projects, Mr. Bhatnagar said BHEL would bid for equipment supply for Reliance's Rs. 10,000 crore power project at Dadri and was willing to take more risks for future projects. It would tone up its alliance with German MNC Siemens for future bidding for super critical thermal projects of 600 MW to 1000 MW.

While BHEL plans to make suitable amends in its commercial strategy, it would also cover risks back to back with technology partner to maintain its dominant position as equipment supplier.