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With projects slowing down in power sector, BHEL has nearly Rs 40,000 crore outstanding payments from various producers. This is nearly Rs 10,000 crore less than the total turnover achieved in 2012-13.
The ‘Maharatna’ category Government-owned company BHEL which announced its annual financial result for 2012-13 on Monday, reported over Rs 50,000 crore as turnover. Though this kind of figures has been reported by the company for the first time, it is just one per cent over than 2011-12.
However, despite highest ever turnover, its net profit went down by nearly eight per cent.
“Out of Rs 40,000 crore outstanding payment, nearly 50 per cent is deferred debt. But we hope to collect a major portion of the remaining amount in the next six months,” BHEL’s Chairman and Managing Director B Prasada Rao told media persons here after the meeting.
Though he refused to divulge the names of companies which have defaulted, he clarified that that there is no work pending for the defaulters.
Mentioning slowdown in the power sector, he said that issues of coal linkages, land acquisition and fund constraints have resulted in non-finalisation of new projects, especially in the private sector, and some of the ongoing projects are on slow execution path.
“Despite these challenges and competitive pressure, BHEL has been able to secure orders worth Rs 22,553 crore for supply and installation of main equipments,” Rao claimed, while adding that the company bagged 67 per cent of the orders in the domestic market.
Rao attributed decline in net profit to increase in manpower cost and mismatch of cash flow. However, he expected better show this fiscal.
“At the end of year (2012-13), cumulative orders in hand for execution in 2013-14 and beyond stand at Rs 1.15 crore,” he said.
This is enough for capacity utilisation of nearly 98 per cent for this fiscal and next fiscal.
At the same time, tenders for capacity creation of 16,500 MW are in the offing and BHEL expects to get significant portion of that.
Similarly, there is expectation that there will be increase in the projects finalisations. All these will boost total business, the company hoped.
On future plans, the company said, “Considering the National Action Plan on Climate Change targeting 15 per cent of electricity generation from renewables by 2020. BHEL is looking towards expanding its capacity to manufacture photovoltaic modules and cells.”
> shishir.sinha@thehindu.co.in
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