Power equipment maker Bharat Heavy Electricals Ltd has reported a 40 per cent rise in net profit to Rs. 6,021 crore in 2010-11 fiscal, driven by technological cost benefits and accounting policy changes.
In the 2009-10 fiscal, it had a profit of Rs. 4,311 crore.
"We had another successful year. The company has taken a number of initiatives. Localisation of technologies, continuous working on supply chain and lower material costs helped in good profit," BHEL's Chairman and Managing Director B Prasada Rao said while announcing its annual results in Mumbai .
The state-run entity’s turnover too witnessed a 27 per cent jump to Rs. 43,451 crore as against Rs. 34,154 crore in 2009-10 period.
BHEL's shareholders have been paid an interim dividend of 132.5 per cent while the earnings per share in the previous fiscal climbed to Rs. 123 per share.
However, when it comes to their new order book in 2010-11, it have not seen any growth and remained at Rs. 60,000 crore.
Seeing big dependence on power business BHEL is planning to expand its non power business.
And as a major power equipment manufacturer in Asia, BHEL is also talking to Japan for supplying equipment for gas power plants. BHEL expects that post the nuclear disaster due to tsunami Gas based power plants will be in demand as it can be built much sooner and easily and is much safer.
BHEL as a standalone equipment manufacturer is not registered a supplier to Japan, specially the gas plant equipments. But BHEL's tie-up with GE may give it the required entry to Japanese market.
However, entering the Japanese market is not what is important. But what is more important here is the fact that it would be an Indian co that can help Japanese in their difficulty times.
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