Power sector behemoth and electrical equipment maker, BHEL’s net profit went up by 17 per cent to Rs 2,815 crores in 2007-08 while its turn over crossed the Rs 20,000 crore mark, BHEl’s chairman and managing director K Ravikumar said at the annual press conference on Thursday.
The company's turnover rose to Rs 21,608 crore in the year 2007-08, up 15 per cent from Rs 18,739 crore in the previous year.
“The results tell our story. We have done well in the last financial year and look forward to continuing the good work,” Ravikumar said.
With a spurt in activities in the power sector, BHEL hopes for orders between Rs 40, 000 to 50,000 crores in the next financial year and already has an order-book backlog worth Rs 85,000 crores.
However the Sixth Pay Commission has taken a toll on the equipment maker’s wage bill. BHEL had provisioned 25 per cent for wage hike but after the pay commission’s report it has provisioned up to 40 per cent from the base salary. The company has decided to revise the wages to keep attrition rates low.
On being asked why orders were being delayed, Kumar said, “Delays are a misnomer. Delays cannot be attributed solely to BHEL; there are factors like lack of infrastructure, environmental clearances, delays in civil work, natural disasters like floods that make the sites inaccessible for months.”
“We have commissioned 7150 mega watts of power plant equipment during the year comprising 6772 MW utility and captive industrial sets in India and 378 MW in the overseas market,” Kumar said.
The installed capacity of BHEL supplied utility sets has gone up to 86,789 MW and BHEL maintains 64 per cent of the country’s total installed capacity of 1,34,697 MW, he said.
Regarding BHEL’s future plans; Kumar said the power sector giant is entering into joint ventures with four state electricity boards for setting up of power plants.
These states include Tamil Nadu where BHEL has entered into a 26:74 joint venture with Tamil Nadu Electricity Board in October 2007 for setting up a 1600 MW (2x800MW) supercritical thermal power plant.
BHEL will also sign a Memorandum of Understanding on Friday with the Nuclear Power Corporation for setting up of nuclear power plants in the country, Kumar said.
He felt that the recent hike is very steep but BHEL has factored in a five per cent for steel price hike.’