Bharat Heavy Electricals Limited (BHEL), on Monday, announced an 8 per cent decline in its net profit at Rs.6,485 crore during 2012-13 and an outstanding payment of Rs.40,000 crore from its customers.
Higher finance and dearness allowance costs as well as mismatch in cash flows also played a major role in pulling down profits. BHEL had reported a net profit of Rs.7,040 crore in the 2011-12 fiscal. Announcing this at a press conference here, BHEL Chairman and Managing Director B. P. Rao said the company’s turnover increased to Rs.50,015 crore in 2012-13 from Rs.49,510 crore in the previous fiscal.
“We had planned a turnover of Rs.1 lakh crore by 2017 but now we will have to review it,’’ Mr. Rao said.
Attributing the decline in net profit to cash flow mismatch, increase in financing costs and dearness allowance, he said it was not possible to work if the cash was not coming. “The customers who are not paying on time will not get priority at the time of delivery,” he added.
As on March 31, 2013, the outstanding payments (due to the companies by generation firms) stood at Rs.40,000 crore. It stood at Rs.38,000 crore during 2012-13.
Of the total outstanding this year, BHEL hopes to receive Rs.20,000 crore in the next six months. The remaining amount is called deferred debt, which is linked to the achievement of certain milestones.
