BHEL net profit up 112% to Rs 457 crore in March quarter
New Delhi: State-owned power equipment maker BHEL posted more than doubling of its standalone net profit to Rs 457.12 crore for the March quarter of last fiscal on higher revenues.
Its net profit was Rs 215.55 crore for the January-March quarter of the preceding fiscal, 2016-17, BHEL said in a statement.
The total income of the company was Rs 10,341.58 crore in the fourth quarter of 2017-18, slightly down from Rs 10,476.28 crore a year ago. The turnover (sales) for the quarter was Rs 9,833 crore as against Rs 9,479 crore in the last year.
The company's standalone net profit for the entire fiscal, 2017-18 was Rs 806.60 crore, up from Rs 495.86 in the previous fiscal. The turnover was Rs 27,850 crore, as against Rs 27,740 crore in the previous year.
It said the turnover for 2017-18 would have been higher by Rs 488 crore totalling to Rs 28,338 crore, a jump of 2.2 per cent over the previous year, considering the duties and taxes on bought-out items and Civil Turnover which were forming part of the turnover in the pre-GST regime.
An interim equity dividend of 40 per cent has been paid for 2017-18, on the enhanced equity following a bonus issue earlier in the year, maintaining the track-record of paying dividends uninterruptedly since 1976-77.
In addition, the company has recommended a final dividend of 51 per cent, subject to the approval of shareholders. With this, the total dividend for the year 2017-18 would stand at 91 per cent, on the enhanced equity. This will be the highest dividend in last four years.
Talking to PTI, BHEL Chairman and Managing Director Atul Sobti said: "Prudent strategies of garnering higher market share in a shrunken and highly competitive business environment enabled the BHEL to book orders worth Rs 40,932 crore in 2017-18. Significantly, this is a quantum jump of 74 per cent over 2016-17."
The orders in last fiscal comprise of Rs 33,342 crore in the Power segment and Rs 7,590 Crore in the industry and overseas segments combined.
BHEL has ended 2017-18 with a total order book of over Rs 1,18,000 crore the highest in the last five years.
Sobti said, "Focus on increased localisation of supercritical technology, higher technology depth, and design optimization enabled the company to enhance its competitiveness and strengthen its leadership in the power plant and associated equipment segment of the Indian utility market."
All the orders for new thermal units are on Engineering, Procurement and Construction (EPC) basis and have been won outbidding Indian and multinational equipment suppliers under International Competitive Bidding (ICB), he said.
In the nuclear segment, the BHEL secured an order for the supply of Steam Generator package (4 SGs) for 2x700 MWe Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) Units-1&2 through Domestic Competitive Bidding (DCB).
"The enhanced thrust on enlarging non-coal business has resulted in an upsurge with order inflows from the industry sector business segment at the highest level in the last six years. This includes highest ever orders won in transportation, defence, aerospace and water business resulting from our unflinching focus on increasing non-coal business. "
In the transportation segment, the company has bagged orders for thirty 3-phase IGBT-based WAG-9H Electric Locomotives from the Railway Board after a gap of over one decade.
In the defence and aerospace segment, orders have been secured for 76/62 mm Super Rapid Gun Mount (SRGM), the most distinctive armament on Indian Naval warships, from the Indian Navy and Mazagon Dock Shipbuilders Ltd. Prestigious orders have also been received for 24 sets of pressure vessel parts from LPSC ISRO and heat exchanger for LCA Tejas Programme from HAL.
The company has entered into a technology collaboration agreement with Kawasaki Heavy Industries Ltd., Japan for the manufacture of stainless steel coaches and bogies for Metro Rail.
As part of its diversification strategy, BHEL has also entered into a Technology Transfer Agreement with Indian Space Research Organisation (ISRO) for the manufacture of space-grade Lithium-ion cells of various capacities utilising the technology developed by ISRO at its Vikram Sarabhai Space Centre (VSSC).
This transfer of technology will enable BHEL to manufacture Lithium-ion cells, in-house, for ISRO and other suitable applications.