After clocking revenues of R43,451 crore during 2010-11, a 27% jump over the previous year, state-owned Bharat Heavy Electricals Ltd (BHEL) said on Monday that it was on track to meet its targeted revenues of $10 billion (Rs 45,000 crore) by 2012.
The company’s net profit in 2010-11 rose to R6,021 crore, 40% up from R4,311 crore last fiscal, driven by technological cost benefits and cut in material costs.
“Localisation of technologies, continuous working on the supply chain and lower material costs helped in good profit,” said BP Rao, chairman and MD, BHEL. Changes in the company’s accounting policy also pushed revenues and profits higher, he said.
Following the Japan disaster, Rao said BHEL was eyeing business opportunities in the gas turbine segment in Japan.
“We are exploring opportunities in that country (in Japan) with our joint venture partner GE for setting gas turbine projects, as they have a smaller gestation period or they can be set up quickly,” he said.
BHEL has earmarked a capital expenditure of R1,700 crore for the current fiscal year.
When asked whether the Middle East and North Africa crisis has hit the company’s business in the region, Rao said that most of the projects there are in final stages of implementation. “As far as new projects are concerned, there might be some delay as there is no activity as of now.”