Financial Daily from THE HINDU group of publications
Sunday, Apr 03, 2005
Financial Daily from THE HINDU group of publications Sunday, Apr 03, 2005 |
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Corporate
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Performance BHEL's Tiruchi unit profit falls M. Ramesh
Tiruchi , April 2 BHEL'S boiler manufacturing unit in Tiruchi has had to suffer a dip in profit because of rising steel prices. The unit made a (pre-tax) profit of Rs 148 crore against Rs 166 crore last year. "We had to take a Rs 120-crore hit over the budget estimate on account of increase in steel prices," the BHEL's Executive Director, Mr A.K. Mathur, told a press conference here on Saturday. The year 2004-05 also saw fewer orders booked. BHEL-Tiruchi booked fresh orders worth Rs 3,944 crore during the year against Rs 4,670 crore in the previous year. However, the outstanding order book stands at a record level of Rs 7,078 crore against Rs 5,220 crore. Mr Mathur explained that in 2003-04, several orders had got bunched. In view of the large orders on hand as well as those in the pipeline, BHEL-Tiruchi has started off a de-bottlenecking exercise at a cost of about Rs 100 crore which will raise its capacity from 4,000 MW a year to 6,000 MW. Mr Mathur said that although BHEL had won orders for most of the power plants in the 210-MW to 500-MW range, competition was intense. "We are caught in a double squeeze," he said, noting that on the one hand there was increase in input prices while on the other, competition was putting pressure on margins. He pointed out that BHEL had lost two orders from West Bengal, for three units of 300-MW each, to the Chinese.
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