BHEL net profit up 70 pc

New Delhi, Apr 3: Power equipment major Bharat Heavy Electricals Ltd today announced an impressive 70 per cent growth in its net profit, clocking a 39 per cent increase in its business turnover in 2005-06.

The highest-ever turnover of Rs 14,410 crore (provisional) was possible due to focus on new international markets, capacity expansion and technology edge, BHEL CMD Ashok K Puri told reporters at the annual press conference.

The company's net profit stood at Rs 1,621 crore in 2005-06 against Rs 953 crore in the previous fiscal.

As on March end 2006, order outstanding position was Rs 37,500 crore. Of this, Rs 9,008 crore was for power plant equipment, Rs 4,728 crore in the industrial sector business segment, Rs 3,348 crore in international business and Rs 1,853 crore due to renewed thrust on renovation and modernisation, spares and services business.

The total export turnover was Rs 3,875 crore during the year, accounting for 27 per cent of the company's total turnover.

Mr Puri said BHEL would enhance its manufacturing capacity from 6,000 MW per annum to 10,000 per annum by 2007 to capitalise on emerging opportunities in the light of the government's target to add 67,000 MW during the eleventh Plan to ensure 'Power for all by 2012'.

''We have already tied up technology to produce higher rating thermal sets with super-critical parameters. Higher rating hydro turbine generator sets and advanced class gas turbines have also been planned,'' he said.

Mr Puri said BHEL was also gearing up to encash emerging opportunities in nuclear power generation in view of the US-India nuclear deal.

BHEL has also tied up technology for 800 MW thermal sets to cater to the country's ultra-mega projects.

Mr Puri clarified that his company was in favour of high capacity sets of 800 MW sets than of 660 MW.

Mr Puri said BHEL was setting up centres of excellence for surface engineering and for intelligent machines and robotics in its efforts to maintain the technology edge through R and D. On the 4x125 MW Kosti power plant in Sudan, BHEL's single largest export order, he said there was no disruption during the setting up of the project.

''Situation in Sudan is much better now, and the government is financing the line of credit,'' he said.

On the Dabhol power project, he said work was going on in full speed.

He said BHEL will acquire small and medium size companies, both in India and abroad, ''but the acquisitions will not be beyond our cash reserves''.

As part of the inorganic growth, BHEL will look at the attractiveness of the opportunities for obtaining new technologies and expertise, intellectual property rights, production extensions and market access, he added.

He clarified that it would not own projects the way ONGC Videsh Ltd did.

''We set up plant, take money, and move on. Our line of business is different from OVL,'' he said.

UNI