September 08, 2008

BHEL 2006-07 turnover up by 29% YoY

Mr AK Puri CMD of Bharat Heavy Electricals Limited, at its 43rd annual general meeting, announced that BHEL has posted a turnover of INR 187,390 million in 2006-07 up by 29% YoY and net profit of INR 24,150 million up by 44% YoY.

Mr Puri said that a total dividend of nearly INR 6,000 million has been declared for 2006-07, which is 245% of the paid up capital pre bonus as against 145% paid for 2005-06. He said that BHEL recorded a surge in economic value addition, which went up to INR 16,570 million from INR 10,790 million for 2005-06.

BHEL secured the highest ever orders worth INR 356,430 million in a single year, while operating in fiercely competitive domestic and international markets. With an order book position of INR 550,000 crore, at the close of the financial year, it expects to achieve robust growth in 2007-08 and beyond.

Mr Puri said that during 2006-07, BHEL continued to expand its international footprint by entering new markets and building up existing ones. It booked export orders worth INR 19,030 million against an average yearly order book of INR 12,750 million of the last 5 years. The year witnessed significant steps towards globalization with the receipt of orders for power equipment for over 900 MW of power projects and 5,600 MVA of transformer capacity, besides successful forays in a host of new market segments. He added that over the next 5 years, BHEL is aiming to grow physical exports by six times the current size. The mergers & acquisitions route will be pursued to avail inorganic growth opportunities to enlarge the company’s operations both in domestic as well as export markets.

In 2006-07, BHEL commissioned 7,863 MW of power plant equipment comprising 4,791 MW utility & captive industrial sets in India and 1,332 MW in overseas markets. In addition 1,740 MW was added to the national grid by erecting and commissioning non BHEL sets, including part supplies. A major milestone of the year was the re commissioning of the 740 MW Ratnagiri Block II, which had been inoperative since the last 6 years. BHEL also commissioned the 6x170MW Tala hydroelectric project in Bhutan, which has become the highest capacity hydro power station, erected and commissioned by BHEL outside the country.

Main plant equipment that BHEL manufactures constitutes about 40% to 50% of the total power plant and the rest includes balance of plant equipment like coal and ash handling systems, water treatment plants, cooling water systems, cooling towers, construction equipment, civil works and services, etc.