Financial Daily from THE HINDU group of publications
Tuesday, Apr 06, 2004
Financial Daily from THE HINDU group of publications Tuesday, Apr 06, 2004 |
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Corporate
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Performance Steel prices, VRS impact BHEL Tiruchi unit M. Ramesh
Tiruchi, April 5 A RS 60-crore additional burden due to steel price hikes and a Rs 40-crore spend on VRS have eaten into the profits of BHEL's Tiruchi unit. In 2003-04, BHEL Tiruchi, which makes boilers for power plants, achieved a turnover of Rs 2,077 crore. This was higher than the previous year's turnover of Rs 1,894 crore, but its pre-tax profit slid to Rs 147 crore from Rs 152 crore, due to steel price hike and VRS expenses. The impact of steel price hike would have been even more — the unit uses about a lakh of tonnes of steel a year — but imports helped. "We even imported some steel from China," Mr A.K. Mathur, Executive Director, BHEL, Tiruchi, said. But a mood of optimism is palpable here, thanks to record orders booked last year — Rs 4,670 crore. BHEL has begun the current year with an order book of Rs 5,220 crore, compared to Rs 2,304 crore last year. At a press conference here, Mr Mathur said that one of the aspects of last year's performance was the units' filing 20 patent applications. Most of these are technology improvements in boilers and some measuring devices. A joint venture project between the National Thermal Power Corporation and BHEL is coming up in Uttar Pradesh, near Itawa, Mr Mathur said. BHEL's contribution to the Rs 600-crore plant is about Rs 50 crore, in the form of equipment. NTPC is investing about Rs 400 crore in the project, the rest of the money is from the Government.
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