BHEL accelerates growth momentum in 2010-11; Achieves 27 per cent jump in topline, bottomline surges 39 per cent; Cumulative orderbook at Rs.1,640,000 Million

Bharat Heavy Electricals Limited (BHEL) has further accelerated its growth momentum in fiscal 2010-11, with a quantum jump of 39% in its Net Profit (PAT) at Rs.60,110 Million, compared to Rs.43,100 Million in the year before.

The company has also recorded a topline growth of 27% with a Turnover of Rs.433,370 Million, as against Rs.341,540 Million of last year. Profit Before Tax (PBT) for the year stood at Rs.90,060 Million compared to Rs.65,910 Million in the previous year, an increase of nearly 37%.

With this, BHEL has maintained its track record of earning profits uninterruptedly for nearly four decades without a break. Notably, BHEL’s turnover has increased by three times and net profit by four times in the last five years.

Prudent cost management practices across the company have enabled BHEL to reduce material cost by a significant 6% in the year 2010-11. In addition, staff costs have been curtailed to the tune of 3% during the year.

A major milestone of the year was an order inflow of Rs.604,760 Million despite operating under intense competitive pressure in domestic and international markets. With an order book position of over Rs.1,640,000 Million, at the end of the fourth quarter, the company expects to achieve robust growth in 2011-12 and beyond.

Notably, BHEL has declared a final equity dividend of 179% for fiscal 2010-11. With an interim dividend of 132.5% paid earlier for the year, this is the highest-ever dividend declared by the company so far.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower to meet the country’s power forecast in the future. The company has established the capability to deliver 15,000 MW per annum and further augmentation to 20,000 MW per annum is underway.