BHEL net up 36%

Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, has posted a 36 per cent jump in net profit for the quarter ended December 2009 on the back of lower raw material costs.

The company posted a net profit of Rs 1,072.59 crore in the quarter as compared to Rs 790.56 crore posted in the corresponding quarter last year.

“The increased profit is mainly driven by lower raw material costs. The material costs that are now rising will affect our operations next year,” said B P Rao, chairman and managing director of the company.

Total income of the company in the three months ended December increased 17.5 per cent at Rs 7,229.2 crore, as compared to the corresponding quarter last year.

The company has booked orders worth Rs 36,400 crore so far in the current financial year, aggregating to about 14,900 Mw. “We have booked orders for Rs 16,000 crore in the third quarter alone,” Rao said.