BHEL bags ICWAI National Award for Excellence in Cost Management 2006

Navratna engineering and manufacturing enterprise, Bharat Heavy Electricals Limited (BHEL) has been conferred the prestigious ‘ICWAI National Award for Excellence in Cost Management 2006’.

Significantly, BHEL has been awarded this recognition for the second successive year, having earlier won the award for the year 2005. Instituted in the year 2003, by the Institute of Cost and Works Accountants of India, the awards are presented annually to corporate entities in their journey towards excellence in cost, quality and delivery.

An independent jury headed by the former Chief Justice of India, Mr. J.S. Verma unanimously selected BHEL’s Hyderabad Unit for the Award for 2006.

The award was presented by Mr. Prem Chand Gupta, Union Minister for Corporate Affairs to Mr. C.S. Verma, Director (Finance), BHEL, at a function in New Delhi.

BHEL has maintained its track record of earning profits and paying dividends uninterruptedly for over three decades without a break. Notably, major financial parameters like Turnover and Orders inflow have doubled in three years and Profit Before Tax and Net Profit in just two years.

The company completed yet another successful year (2006-07), recording an all-time high turnover of Rs.187,390 Million, notching a growth of more than 29% over the previous year. Net profit also soared by nearly 44% to Rs.24,150 Million. Consequently, an enhanced equity dividend of 185% - the highest so far (including interim dividend of 125% paid earlier), as well as an issue of Bonus Shares in the ratio of 1:1 have been declared by the company.

Significantly, in line with its vision ― ‘committed to enhancing shareholder value’, BHEL recorded a surge in Economic Value Addition (EVA), which catapulted to Rs.15,320 Million in 2006-07 from Rs.10,790 Million in the year before - commendable performance for an engineering company.

Spurred by the strong and consistent growth achieved in the last few years, BHEL has now set its sights on becoming a US$10 Billion company by 2012. The company has unveiled a ‘Strategic Plan 2012’ that will enable it grow at a 20% Compounded Annual Growth Rate (CAGR) and achieve a turnover of US$10 Billion by 2011-12, i.e. two and a half times its present turnover of US$4 Billion.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself for the future, by way of technology, facilities and trained manpower to meet the country’s power forecast for the 11th Plan and beyond.