The Hindu Business Line : BHEL to invest Rs 1,000 cr in capacity expansion — Net up 52%; turnover crosses Rs 10,000 cr

Mr Ashok K. Puri, CMD, BHEL (right), with Mr Ramji Rai, Director (Engineering, research & development), addressing a press conference in the Capital on Friday. — Ramesh Sharma

New Delhi , April 1

EQUIPMENT manufacturer Bharat Heavy Electricals Ltd (BHEL) on Friday announced a 52-per-cent jump in net profit at Rs 1,002 crore in 2004-05, compared to Rs 658 crore registered during the previous financial year.

Announcing the unaudited financial results, the Chairman and Managing Director of BHEL, Mr A.K. Puri, said the company's turnover had crossed the Rs 10,000-crore mark for the first time, up by 21 per cent at Rs 10,520 crore against the previous year's turnover Rs 8,662 crore.

On the company's plans for the future, Mr Puri said the equipment major planned to expand its annual manufacturing capacity to 10,000 MW at an investment of nearly Rs 1,000 crore over the next two years, from the existing manufacturing capacity of 6,000 MW. The expansion would be completed by 2007, Mr Puri said. He said that during the year gone by, BHEL had secured orders worth Rs 18,016 crore for domestic and overseas markets, taking the total outstanding order book to Rs 31,800 crore.

The state-run company has bagged orders worth Rs 13,458 crore in the power sector, in addition to which there are orders worth Rs 1,283 crore secured for renovation and modernisation of various power plants. The company achieved an export turnover of Rs 2,331 crore, accounting for over 22 per cent of its total turnover during the year. BHEL's physical export order inflow stood at Rs 448 crore during the last fiscal.

During the last fiscal, the company commissioned 21 power units with a total capacity of 3,548 MW, besides 18 captive sets of 467 MW capacity going on stream. The year also saw the completion of a 140-MW project in Oman and a 21.6-MW project in Indonesia.

Mr Puri said BHEL is implementing a phased investment programme of Rs 800-1,000 crore for enhancing its installed manufacturing capacity of power plant equipment to 10,000 MW per year from 6,000 MW. This would enable the company to play a major role in capacity addition programme of the country, he added.

He said the economic value added (EVA) was up 42 per cent at Rs 518 crore during the last fiscal, compared to an EVA of Rs 366 crore achieved in 2003-04. "The company has set new benchmarks in execution of power projects and a 500 MW unit of the Ramagundam Super Thermal Power Station was synchronised in a record time of 36 months and ten days," he added.

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