Bharat Heavy Electricals Ltd on Monday posted a nearly 40% jump in consolidated net profit at Rs 6,053.4 crore for the year ended March. The company had posted a profit of Rs 4,326.9 crore in the same period last year.
The government is likely to divest 5% equity in the company, BHEL said in a filing to the Bombay Stock Exchange. The stake sale is likely to yield the government about Rs 4,500 crore at existing market prices.
“The board of directors of the company has recommended the disinvestment of 5% of the paid-up equity of BHEL out of the Government of India's shareholding,” BHEL said in the filing.On a standalone basis, the company saw a 39% rise in net profit in 2010-11 Rs 6,011.20 crore against Rs 4,310.64 crore in the year-ago period.
The company’s total income on a consolidated basis rose to Rs 43,678.6 crore in 2010-11 from Rs 34,498.5 crore in the same period a year-ago.
The board has also recommended a 179% dividend, amounting to Rs 17.9 per share for 2010-11. This would be in addition to an interim dividend of Rs 13.3 per share.
“The impact due to change in the accounting policy for 2010-11 is an increase in turnover by Rs 2,772.8 crore, provision for contractual obligation by Rs 2,077.31.0 crore and profit before tax by Rs 695.5 crore,” the company said.