BHEL Net Profit Surges 33 per cent in the First Quarter of 2008-09; Quantum jump of 32 per cent in Sales/Income from Operations; Outstanding Order Book at Rs.950,000 Million

Bharat Heavy Electricals Limited BHEL has accelerated the growth momentum achieved in the last fiscal with a 32 per cent rise in Sales/Income from Operations in the first quarter of the current financial year 2008-09.

BHEL ended the quarter with its Sales/Income from Operations at Rs.47,036 Million as against Rs.35,696 Million in the corresponding period in the previous fiscal.

The company has also recorded significant growth in its profitability parameters in the first quarter of 2008-09, with its Net Profit at Rs.3,844 Million, surging more than 33 per cent over Rs.2,889 Million in the first quarter of the previous year. With this, BHEL has maintained its track record of earning profits for over three decades without a break. Earnings Per Share EPS has risen by 33 per cent at Rs.7.85 on the post bonus equity.

With an order book position of Rs.950,000 Million at the end of the first quarter, the company expects to achieve robust growth in 2008-09 and beyond.

Spurred by the strong and consistent growth achieved in the last few years, BHEL has set its sights on becoming a Rs.450,000 Million company by 2012. The company has unveiled a 'Strategic Plan 2012' that will enable it to grow at a Compounded Annual Growth Rate of 20 per cent.

Expansion of activities in the market segments that BHEL operates in is the core element that will drive its growth strategy in future. The growth planks for the company over the next five years will be driven by Capacity and Capability enhancement that will leverage BHEL's efforts in its core area of power supported by industry, transportation, transmission, exports and spares and services businesses. The implementation of the Plan is being taken up with full vigour.

BHEL is building Capacity and Capability to contribute fully for meeting the power forecast for the 11th Plan and beyond. For this, the company has already enhanced its manufacturing capacity to 10,000 MW per annum and is further augmenting it to 15,000 MW per annum in the next two years.