The Hindu : BHEL net up 9 p.c.

Online edition of India's National Newspaper
Wednesday, Apr 02, 2003

Business

Business

BHEL net up 9 p.c.

By Our Special Correspondent

NEW DELHI APRIL 1. In the backdrop of delay in orders in various business segments, the public sector Bharat Heavy Electricals Ltd. (BHEL) has recorded a 9.2 per cent rise in net profit to reach Rs. 511 crores in 2002-03 as against Rs. 468 crores in the previous year.

The turnover has also risen marginally by 3.1 per cent to Rs. 7,510 crores from Rs. 7,287 crores in 2001-02. According to the BHEL Chairman and Managing Director, K.G. Ramachandran, the profit before tax has also risen by 14.6 per cent to Rs. 760 crores during the year. With this, he said the BHEL maintained its track record of earning profits without a break since 1971-72.

Addressing a press conference here today, he said the company's performance was significant in the backdrop of delay and deferment of orders in various business areas. The company achieved this due to continued focus on growth strategies such as prudent financial management, enhanced focus on international markets, benchmarking against international standards and diversified business portfolio.

Mr. Ramachandran said the company's total export turnover was Rs. 2,180 crores during the year as against Rs. 2,511 crores in the last fiscal.

During 2002-03, the BHEL secured the highest-ever orders worth Rs.11,248 crores from domestic and overseas markets. At the end of the year, outstanding orders in hand stood at over Rs.15,800 crores, he said.

In the power sector, he said the company bagged orders for power plant equipment of 3521 MW including two contracts for mega power projects, one each for hydel and thermal.

In the industry sector (business segment), the BHEL's market share of over 60 per cent in its area of operations was maintained. Renewed thrust on oil sector business led to a major contract for upgradation of 12 onshore oil rigs from the ONGC.

Regarding future growth areas, he said the company planned to enlarge presence in areas such as the oil sector, exports, overseas joint ventures and IT software services for power sector and engineering applications and industrial IT and automation. Besides it is seeking to be positioned as a regular engineering procurement and construction (EPC) contractor.

On the company's achievements, Mr. Ramachandran said the firm bagged the single-largest export order of Rs. 1,128 crores for a 600 MW turnkey gas-based power plant from Libya.

Besides, the first-ever overseas order for advanced class gas turbines from Oman and a maiden order for hydro power equipment from Taiwan was received.

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