Bhel reports growth in profitability, announces bonus shares in ratio 1:2
Maintaining the positive trend of FY 2016-17, Bharat Heavy Electricals Limited (BHEL) has reported a growth in profitability, continuing the momentum. For the standalone first quarter of FY 2017-18, the company reported a turnover of Rs 5,607 Crore almost similar to the corresponding figure of the last year, and a profit before tax (PAT) of Rs108 Crore, registering a significant growth of 12per cent, against the corresponding quarter in the year before.
Significantly, at its meeting held on 10 August 2017, the Board of Directors of the company has recommended the issue of bonus shares in the ratio of 1 bonus share of Rs 2 against 2 existing equity shares of Rs 2, subject to approval of shareholders.
Maintaining the growth momentum has been made possible by a slew of strategic initiatives and cost optimisation measures put in place by the management. Mr. Atul Sobti, Chairman and Managing Director of the company said that, the company is enhancing its focus on diversifying in the non-thermal power segment and other new areas, while maintaining its leadership status in the power sector.
As part of this, focus is on creating new verticals within the company to capitalize on the massive infrastructure spending by the Govt. of India, with a special focus on Indian Railways, defence and other industrial products to drive the next wave of growth. BHEL has also been focusing on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector. The company has an outstanding order book position of Rs 1,01,380 Crore at the end of third quarter of this fiscal.