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Home News Power Sector News BHEL net profit increases by 10% to Rs. 3138 crores

BHEL net profit increases by 10% to Rs. 3138 crores

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BHELBharat Heavy Electricals Limited (BHEL) recorded it's highest-ever Net Profit (PAT) of Rs.3138 crores which grew around 10% over the previous fiscal. The company recorded a top line growth of 31% and an all-time high turnover of Rs. 28033 Crore. Mr. K. Ravi Kumar, Chairman & Managing Director, BHEL, speaking at the 45th Annual General Meeting of the company, informed shareholders that as nation's infrastructure development plays a significant role in its economic growth, enhancement of power generating capacity is one of the key drivers to boost growth, and BHEL has a larger role to play in this.

The company secured orders worth Rs.596,780 Million. Utility orders amounted to 17,020 MW and Industry Sector order inflows crossed the Rs.100,000 Million mark. BHEL achieved a physical export order inflow of Rs.32,650 Million during the year - an increase of 41% over the previous fiscal.

BHEL is working towards improving efficiency, optimising costs and planning for execution of deliverables to the desired specifications. Market dynamics continue to be unpredictable and it is prudent to remain committed to the capacity and capability building business strategy, which will enable BHEL to build a strong competitive edge for the foreseeable future.

As part of R&D efforts, Mr. Ravi Kumar said that BHEL spent Rs.6,900 Million on R&D programmes, 40% higher than the previous year and 2.46% of its sales turnover. Technology development efforts undertaken by BHEL led to filing of 213 patents and copyrights, significantly enhancing the company’s intellectual capital. As part of its continuous endeavour to develop more efficient products/technologies, BHEL is upgrading facilities for Solar Photovoltaics to handle thinner and larger multi and mono-crystalline wafers. With this state-of-the-art facility, BHEL will be able to offer Solar Cells of 15-16% efficiency and PV Modules up to 270 W power output from 2009-10 onwards. Capacity augmentation for fabrication of Space Quality Batteries is also underway to meet growing techno–commercial demands of ISRO for its satellite projects, he added.

Elaborating on BHEL’s growth strategies, the CMD said that although several initiatives have been taken in order to face the future with optimism, operating in the competitive business environment will require building strategic partnerships with certain players. In line with this, BHEL has formed a Joint venture with TNEB for a 2x800 MW power plant at Udangadi in Tamil Nadu. Similarly, a JV has been signed with KPCL for a 2x800 MW power plant at Yeramarus and a 1x800 MW power plant at Edlapur, both in Karnataka. A MoI has also been signed with GSECL for setting up a 1x800 MW project. These strategic alliances are critical for leveraging equipment sales in the Supercritical technology domain. Similar other alliances being pursued for sourcing critical inputs, equipment, etc. include tie-ups with Kerala Electric & Allied Company Limited (KEL) and Heavy Engineering Corporation (HEC).

A 50:50 Joint Venture was formed with NTPC Ltd. to carry out EPC contracts as well as manufacture and supply equipment for power plants and other infrastructure projects in India and abroad. A MoU has also been signed with Nuclear Power Corporation of India (NPCIL) to form a Joint Venture company to carry out EPC activities on the secondary side (turbine side) of nuclear power plants of 700 MWe and above in India and abroad. BHEL is also in talks with probable international technology providers for 700 MWe and above nuclear turbines. Besides, a MoU has been signed with GE-Hitachi for cooperation in Nuclear island equipment for power plants to be set up by NPCIL, said the CMD.

He said that as a continuation of the strategy to pursue inorganic growth where BHEL has acquired BHPV as a 100% subsidiary and is reviving it with adequate managerial and financial support, the company is also pursuing opportunities in the areas of Transmission, Transportation and Renewable Energy. BHEL has signed MoUs with GE for Diesel Electric locomotives and manufacture of propulsion systems for these locomotives and with BEL for formation of a JV to address Solar Photovoltaic business and for setting up manufacturing facility for silicon wafers, solar cells and modules.

BHEL’s manufacturing capacity expansion from 10,000 MW p.a. to 15,000 MW p.a. is proceeding apace and the company has decided to hike this further to 20,000 MW by the end of the XIth Plan at an investment of Rs.15,900 Million. Further, the foundation stone for a new plant at Tirumayam in Tamil Nadu has been laid for the manufacture of boiler components, he added.

Source - Machinist

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