BHEL pays 170 per cent Dividend on Post-Bonus Equity for fiscal 2008-09

With a final dividend payout of 80%, Bharat Heavy Electricals Limited (BHEL) has paid an equity dividend of 170% on the enhanced equity capital post-bonus for fiscal 2008-09, as against 152.5% paid in the year before. This includes an interim dividend of 90% paid earlier. At Rs.8,320 Million, this is the highest-ever dividend paid by the company so far.

With this, the company has maintained its unmatched track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs.2,652 Million towards the final dividend for the year 2008-09 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Pranab Mukherjee, Hon’ble Union Minister for Finance by Mr. Vilasrao Deshmukh, Hon’ble Union Minister for Heavy Industries and Public Enterprises in the presence of Mr. Arun Yadav, Hon’ble Union Minister of State for Heavy Industries and Public Enterprises, Dr. Satyanarayana Dash, Secretary, Ministry of Heavy Industries & Public Enterprises and Mr. B.P. Rao, Chairman and Managing Director, BHEL.

Directors on the board of BHEL as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion.

In fiscal 2008-09, BHEL further built on the growth momentum achieved in the previous year, with a spectacular top line growth of 31% and an all-time high Turnover of Rs.280,330 Million. Despite unprecedented increase in raw material costs, the company sustained its profitability and recorded its highest-ever Net Profit (PAT) of Rs.31,380 Million, which grew around 10% over the previous fiscal.

Significantly, the company surpassed its own record set in 2007-08 by securing orders worth Rs.596,780 Million, the highest-ever in a single year, despite operating under intense competitive pressure in domestic and international markets. Utility orders amounted to 17,020 MW and Industry Sector order inflows crossed the Rs.100,000 Million mark for the first time. The confidence reposed by private sector customers is evident from the fact that Rs.133,200 Million worth of orders were placed on BHEL in 2008-09.

The growth momentum achieved by BHEL in 2007-08 is likely to be accelerated in the current fiscal. With an order book position of over Rs.1,170,000 Million - the highest-ever both in physical as well as financial terms, at the close of the financial year, the company expects to achieve robust growth in 2009-10 and beyond.