BHEL Pays Final Dividend; Total Payout for 2006-07 touches All-time High of around Rs.6,000 Million

Bharat Heavy Electricals Limited (BHEL) has paid a highest-ever dividend of 245% of equity for the year 2006-07, amounting to Rs.6,000 Million, including an interim dividend of 125% (Rs.3,060 Million) paid earlier. This is a sharp increase over the 145% (Rs.3,550 Million) dividend paid for 2005-06.

The dividend payout to the Government of India at Rs.4,060 Million, for 2006-07, is an all-time high, as against Rs.2,400 Million for 2005-06. A dividend cheque of Rs.1,989 Million, as the government share (67.72%) of the final dividend for the year 2006-07 (government share of interim dividend Rs.2,072 Million already paid earlier) was presented today to Mr. Sontosh Mohan Dev, Hon’ble Union minister for Heavy Industries & Public Enterprises by Mr. Ashok K. Puri, CMD, BHEL.

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

In addition, BHEL has issued bonus shares to its shareholders during 2006-07 in the ratio of 1:1.

BHEL has been on a high trajectory of growth in the recent past and has achieved a growth rate of 29% in turnover and 44% in net profit during 2006-07. The turnover and PAT for 2006-07 stood at Rs.187,390 Million and Rs.24,150 Million, respectively. The Economic Value Added (EVA) of the company touched a record high of Rs.16,570 Million, surging more than 50% from Rs.1,0790 Million, achieved in the year 2005-06.

Notably, in the year 2006-07, BHEL secured the highest ever orders worth Rs.356,430 Million, in a single year. Further, in the current financial year (up to August 2007), BHEL has already secured orders worth more than Rs.200,000 Million. The outstanding order book of the company stands at over Rs.650,000 Million.

BHEL is building capacity and capability to contribute fully for meeting the power forecast for the 11th Plan and beyond. For this, the company is enhancing its manufacturing capacity in the next three years, from 6,000 MW to 15,000 MW.

Having demonstrated its track record in successfully establishing new technologies to serve the nation’s power sector, BHEL has equipped itself to produce thermal power equipments for 800 MW set 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.