BHEL pays all-time high 145% dividend for fiscal 2005-06

Bharat Heavy Electricals Limited (BHEL) has paid the highest ever equity dividend of 145% for fiscal 2005-06 as against 80%, in the year before, maintaining its track record of paying dividends uninterruptedly for the last 30 years.

A cheque for the payment of the final dividend for the year, on the equity (67.72%) held by the Government of India, was presented here to Mr. Sontosh Mohan Dev, Hon’ble Union Minister for Heavy Industries & Public Enterprises by Mr. Ashok K. Puri, CMD, BHEL in New Delhi. With this, BHEL has made a total dividend payout of Rs.2403.4 Million for the year 2005-06, to the Government of India.

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

During the year 2005-06, BHEL recorded an all-time high turnover of Rs.145,250 Million, notching a growth of nearly 41% on top of 19% and 16% top line growth achieved in 2004-05 and 2003-04, respectively. This is also the highest year-on-year growth in the last three decades. In the same period, net profit soared over 76% to Rs.16,790 Million.

Significantly, in line with its vision -‘committed to enhancing stakeholder value‘, BHEL recorded a surge in Economic Value Addition (EVA), which catapulted to Rs.10,790 Million from Rs.504 Million for the year before

BHEL is building Capacity and Capability for the future to contribute fully for meeting the power forecast for the 11th Plan and beyond. For this, the company is investing more than Rs.16,000 Million for holistic modernization and capacity expansion of its facilities from 6,000 MW per annum at present to 10,000 MW per annum, which will be available in 2007. BHEL will be more than willing to enhance it further as required by the country’s power sector in future. These programmes are in the nature of brown field expansions and have strong economic rationale in terms of time and cost benefits. BHEL has large reserves in addition to leveraging its capacity and can fully meet the resource requirements for its expansion on its own.

BHEL has already taken necessary steps to cater to the likely demand for the next higher rating 800 MW Thermal sets and is actively looking at opportunities in Ultra Mega projects with various project developers. 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.