HEC earns profit for 6th year in a row

The state-owned Heavy Engineering Corporation (HEC), Ranchi, has achieved a turnover of Rs 723.52 crore and net profit of Rs 5,.90 crore against a turnover of Rs 681.21 crore and net profit of Rs 38.14 crore respectively during 2010-11.

The chairman & managing director of HEC, Ramaballava Misra said on Friday, “Although the net profit of Rs 5,90 crore was lower than that earned during 2008-09, 2009-10 and 2010-11, the company has been able to earn profit for the 6th year in a row.” Misra said the achievement during the financial year 2011-12 seemed to be a “ credible achievement in spite of the fact that the company had faced many hurdles during the year.

The CMD cited some instances that stood in the way of achieving higher net profit during the financial year 2011-12. Those are: low index of industrial production growth in the country, labour unrest in phases by unions of workmen, contract workers and executives for implementation of 2007 wages revision.

He said the problem was further compounded by the decision of State Bank of India to discontinue operation of the bank account of the company (HEC) in February & March, 20112. In spite of above bottleneck, HEC had been able to achieve 6.21 per cent higher turnover in 2011-12 over that of 2010-11.

The net profit earned during the year was lower by 84.53 per cent that of 2010-11. Misra said that that the turnover and net loss during April to December, 2011, were Rs 373.95 crore and Rs 44.46 crore respectively.

However, performances had improved considerably during the last quarter when the turnover and profit had been Rs 349.57 crore and Rs 50.36 crore respectively.