BHEL reports 60% surge in Q2 net profit at Rs 1.85 bn vs Rs 1.15 bn

State-owned power plant equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) Thursday reported a 60 per cent surge in its September quarter net profit as its order book more than doubled.

Net profit of the company stood at Rs 1.85 billion, or Rs 0.50 per share, in July-September period of this year compared with Rs 1.15 billion, or Rs 0.31 a share, in the same period a year ago, the company said in a statement here.

Turnover rose 7 per cent to Rs 66.07 billion.

"In a highly competitive and shrunken market, concerted efforts have resulted in the order book more than doubling to Rs 95.30 billion for the first half of 2018-19 fiscal (April 2018 to March 2019) compared to Rs 36.18 billion in the six months of corresponding FY17-18," BHEL said.

This resulted in an outstanding order book of Rs 1155.33 billion at the end of the second quarter of FY18-19, which is 19 per cent higher than last year.

For the first half of FY 2018-19, the company recorded a net profit of Rs 3.41 billion, an increase of 74 per cent, and a turnover of Rs 123.97 billion, up by 8 per cent over FY 2017-18.

Talking to PTI, BHEL Chairman and Managing Director Atul Sobti said that the company has delivered a resilient performance due to the adoption of strategic initiatives like accelerated execution, cost control, and resource optimisation measures, resulting in significant progress in enhancing profitability and productivity, reinforcing leadership in the power sector, and strengthening non-power business areas.

He said that these achievements, along with the strategies in place, are strengthening BHEL's pre-eminent position among national assets and assuring its continued contribution in building a 'New India'.