BHEL pays 90 per cent Interim Dividend on Post Bonus Equity for fiscal 2007 08

Bharat Heavy Electricals Limited BHEL has paid an interim dividend of 90 per cent on the enhanced equity capital post bonus, for fiscal 2007 08, maintaining its track record of paying dividends uninterruptedly for the last 32 years.

A cheque of Rs.2,980 Million for the payment of the interim dividend for the year on the equity 67.72 per cent held by the Government of India, was presented here today to Mr. Sontosh Mohan Dev, Honble Union Minister for Heavy Industries and Public Enterprises by Mr. K Ravi Kumar, Chairman and Managing Director, BHEL.

Senior officials of the Department of Heavy Industries and Public Enterprises and BHEL were also present on this occasion.

The growth momentum achieved by BHEL in 2006 07 is likely to be maintained in the current fiscal also. The company has recorded significant growth in its profitability parameters in the first nine months of 2007 08, with its Net Profit at Rs.17,490 Million, surging more than 38 per cent over the corresponding period in the previous year. With an order book position of Rs.780,000 Million, at the end of the third quarter, the company expects to achieve robust growth in 2007 08 and beyond.

BHEL has drawn up a Strategic Plan 2012 to ensure sustainable profitable growth over the next five years with the objective of reaching a turnover level of Rs.450,000 Million by 2011 12. 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 BHELs 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.

Having demonstrated its track record in successfully establishing new technologies to serve the nations power sector, BHEL has equipped itself to produce thermal power equipment for 800 MW sets with supercritical parameters, suited to Indian conditions, using Indian as well as imported coal. In addition, the company is shoring up its capability for higher rating Hydro sets and advanced class Gas Turbines to cater to upcoming market requirements.