BHEL pays all-time high Equity Dividend of 233 percent for fiscal 2009-10

With a final dividend payout of 123%, Bharat Heavy Electricals Limited (BHEL) has paid an equity dividend of 233% on the enhanced equity capital post-bonus for fiscal 2009-10, as against 170% paid in the year before. This includes an interim dividend of 110% paid earlier. At Rs.11,410 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.4080 Million towards the final dividend for the year 2009-10 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Vilasrao Deshmukh, Hon’ble Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL in the presence of Sh. Arun Yadav, Hon’ble Union Minister of State for Heavy Industries, Sh. Saurabh Chandra, Additional Secretary & Financial Advisor, DIPP, Ministry of Commerce and Industry and Sh. Rajiv Bansal, Joint Secretary, Department of Heavy Industry and Public Enterprises.

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 2009-10, BHEL further built on the growth momentum achieved in the year before, with a top line growth of 22% and an all-time high Turnover of Rs.3,41,540 Million. The company also recorded a quantum jump of 37% in its Net Profit (PAT) which was also the highest-ever at Rs.43,110 Million. Notably, BHEL’s turnover has increased by three times and net profit by four times in the last five years.

The company secured orders worth Rs.5,90,370 Million despite operating under intense competitive pressure in domestic and international markets. With an order book position of over Rs.14,40,000 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 2010-11 and beyond.

Significantly, BHEL was recently conferred the maximum number of 7 ‘ICWAI National Awards for Excellence in Cost Management’, among public and private sector companies. BHEL has been awarded the recognition for the fifth successive year, having earlier won the awards for the years 2005, 2006, 2007 and 2008. The best cost management practices across the company enabled BHEL to reduce the material cost by 2.8% in the year 2009-10.

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 contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower to meet the country’s power forecast in the future. The company has established the capability to deliver 15,000MW per annum and further augmentation to 20,000 MW per annum is underway.