Bracing up stiff competition from international players including Chinese companies, state-run power equipment major Bharat Heavy Electricals Limited (BHEL) on Tuesday announced a 22 per cent jump in net profit at Rs.816 crore for the three months ended June 30, 2011, against Rs.668 crore in the year-ago period.
The rise in profits had been aided by higher sales and better cost management efforts. Sales in the first quarter climbed to Rs.7,433 crore from Rs.6,761 crore, it said in a statement. The good quarterly profit has been mainly attributed to increased sales and prudential cost management efforts, especially in tackling material expenses. “With this, BHEL has maintained its track record of earning profits uninterruptedly for nearly four decades without a break.
BHEL's turnover has increased by three times and net profit by four times in the last five years,” the statement said.
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At the end of the first quarter, the public sector entity had an order book position of Rs.1,59,600 crore.