BHEL Q1 net up 4% at Rs 81 cr; board gives nod for bonus issue

State-run power equipment maker Bharat Heavy Electricals Limited (BHEL) has posted a 3.92 per cent jump in standalone net profit to Rs 80.82 crore for the quarter ended June 30, 2017.

The company had reported a standalone net profit of Rs 77.77 crore for the quarter ended June 30, 2016, BHEL said in a BSE filing on Thursday.

Overall income rose to Rs 6,194.21 crore for the quarter ended June, from Rs 6,070.21 crore in the year-ago period.

The company has outstanding order book position of Rs 1,01,380 crore as on June 30, 2017.

The company said that maintaining the positive trend of 2016-17, it has reported a growth in profitability.

For the standalone first quarter of FY 2017-18, it reported a turnover of Rs 5,607 crore, almost similar to the corresponding quarter's figure, it added.

At a meeting held today, its board of directors has recommended the issue of bonus shares in the ratio of 1 bonus share of Rs 2 against 2 existing equity shares of Rs 2, subject to approval of shareholders.

"Maintaining the growth momentum has been made possible by a slew of strategic initiatives and cost optimisation measures put in place by the management," Atul Sobti, Chairman and Managing Director, BHEL, told PTI.

He further said that the company is enhancing its focus on diversifying in the non-thermal power segment and other new areas, while maintaining its leadership status in the power sector.

As part of this, he said, the focus is on creating new verticals within the company to capitalize on the massive infrastructure spending by the government, with a special focus on Indian Railways, defence and other industrial products to drive the next wave of growth.

BHEL has also been focusing on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector, it added.