BHEL bags ICWAI National Award for Excellence in Cost Management 2005.

Navratna engineering and manufacturing enterprise, Bharat Heavy Electricals Limited (BHEL) has been conferred the prestigious ‘ICWAI National Award for Excellence in Cost Management 2005’.

Instituted in the year 2003, by the Institute of Cost & Works Accountants of India, the awards are presented annually to the corporate organizations in their journey towards excellence in cost, quality and delivery.

An independent jury headed by the former Chief Election Commissioner of India, Mr. TS Krishnamurthy unanimously selected BHEL’s Haridwar Unit for the 2005 Award.

The award will be presented by Mr. Prem Chand Gupta, Union Minister of State for Company Affairs (Independent Charge) to Mr. CS Verma, Director (Finance) on the BHEL board, at a function here today.

BHEL has maintained its track record of earning profits for over three decades without a break, and during fiscal 2004-05 its net profit surged to Rs.9,530 Million, and an all time high turnover of Rs.103,360 Million, an increase of 19% over the previous fiscal. Significantly, BHEL has maintained its track record of paying dividends uninterruptedly for the last 30 years and for the current fiscal (2005-06), the company has declared an all time high interim equity dividend of 40%.

Despite competitive pressure on prices, the company was able to achieve the incredible feat as a result of strategic management with a blend of appropriate measures like enhanced operational efficiency, prudent financial management & benchmarking against international standards.

Significantly, in line with its vision ― committed to enhancing shareholder value’, BHEL recorded a surge in Economic Value Addition (EVA), which catapulted to Rs.5,040 Million in 2004-05 from Rs.3,660 Million in the year before.

The momentum of double digit growth has been accelerated in the current fiscal and the company has recorded significant growth in its profitability parameters in the first six months of 2005-06. While net sales/income from operations has risen by a healthy 53.7% at Rs.49,020 Million, the profit after tax (PAT) has increased to Rs.3.880 Million.