BHEL Q3 net profit at Rs 93-cr; announces 40% interim dividend

This comes on the back of higher income from power segment

State-run engineering major BHEL on Tuesday posted a net profit of Rs 93.54 crore for the quarter ended on December 31, 2016, on the back of higher income from power segment.

The company had reported a net loss of Rs 1,084.96 crore for the quarter ended December 31, 2015.

Total income increased to Rs 6,461.22 crore for the quarter ended December 31, 2016, from Rs 5,498.07 crore for the quarter ended December 31, 2015, BHEL said in a BSE filing.

Shares of BHEL soared 4.65 per cent to trade at Rs 150.70 after an announcement of the financial results.

"The consistent growth in the first three-quarters of this financial year comes in the wake of the trend of negative topline growth prevailing for the last 14 previous quarters. This has been made possible by a slew of strategic initiatives and cost optimisation measures put in place by the management," BHEL Chairman and Managing Director Atul Sobti told PTI.

For nine months to December 2016, BHEL posted a net profit of Rs 280 crore against a loss of Rs 1,215 crore in the same period of previous year. Revenue grew by 19 per cent to Rs 18,966 crore in the first nine months of FY17.

"Having achieved the immediate target of regaining growth, the company is now enhancing its focus on maintaining leadership status in the power sector while diversifying in the non-thermal power segment and other new areas," he said.

As part of this, the focus is on creating new verticals within the company to capitalise 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, he added.

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.

Revenue from power segment rose to Rs 5,096.23 crore in October-December 2016 from Rs 4,312.72 crore in the year-ago period. Industry segment contributed Rs 1,368.63 crore to overall revenue in the December quarter against Rs 1,136.29 crore in the year-ago period.

The company has an outstanding order book of Rs 98,400 crore at the end of third quarter of this FY.

BHEL also informed that its board has approved payment of interim dividend at the rate of 40 per cent (Rs 0.80 per share) on the paid-up share capital for 2016-17 and interim dividend shall be paid/dispatched on February 22, 2017.