The Hindu Business Line : BHEL-Ramachandrapuram turnover up 27 pc

SETTING its eyes on the Rs 2,700-crore turnover target by 2007, Bharat Heavy Electricals Ltd (BHEL - Ramachandrapuram) has achieved a turnover of Rs 1,755 crore during 2003-04.

This was 27 per cent more than last year's turnover of Rs 1,378 crore.

Addressing a press conference on Monday, Mr A.N. Jagadeeswaran, Executive Director, said a profit before tax of Rs 148 crore (Rs 137 crore) was recorded during the year.

The voluntary retirement scheme announced in June-July last year had resulted an outflow of Rs 30 crore.

The unforeseen VRS expenditure and fluctuations in exchange rates had an impact on profits.

Exports shot up to Rs 491 crore (Rs 288 crore), comprising 28 per cent of the turnover.

The new fiscal opened with a bountiful Rs 2,514-crore worth orders for the company.

"We are confident of crossing the Rs 2,000-crore mark this financial year," Mr Jagadeeswaran said.

"Diversification of BHEL into gas turbine business in mid-eighties proved to be a successful strategy," he said.

The company saw a good business opportunity in the recent gas finds and the revival of NTPC interest in some of them. "Thrust is being given to refurbishment business of gas turbines and compressors," he said.

On the other hand, the shifting of focus back to high capacity in pit-based thermal plants would also benefit BHEL.

"This will increase power sector business," he pointed out. He also expected new orders coming as companies would go for refurbishment, replacement and upgradation of oil rigs.

JV with NTPC

During the year, BHEL signed a memorandum of understanding (MoU) with NTPC for setting up a joint venture company to take up maintenance jobs.

Mr Jagadeeswaran, however, said that formation of the company would take some time, as it needed some approvals from the Government.

Payments to the exchequer went up to Rs 254 crore (Rs 163 crore) during the year.

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