BHEL profit jumps 58%, doles out 1:1 bonus

BS 200 SCORECARD

Power equipment manufacturer Bharat Heavy Electricals (BHEL) today reported 58 per cent increase in net profit in the third quarter of 2006-07. The company declared a net profit of Rs 667.7 crore for the quarter against Rs 423.2 crore in the corresponding period of the last fiscal.

The company also declared an interim dividend of Rs 12.50 per share or 125 per cent. The has also recommended an issue of bonus shares in the ratio of 1:1, that is, one additional equity shares for every one equity share held by members on the record date to be fixed by the board.

Total income from sales rose to Rs 4,339.7 crore from Rs 3,294.4 crore in the previous corresponding quarter, a jump of 31 per cent. The company's earnings per share for the third quarter stood at Rs 27.28 compared with Rs 17.29 in the previous corresponding quarter. 
 

Rs crore	Quarter ended Dec		% chg
	2005	2006
Net sales	3294.40	4339.70	31.73
Other income	118.70	185.50	56.28
Total expenses	2691.50	3410.50	26.71
Gross profit	708.00	1102.70	55.75
Net profit	423.20	667.70	57.77
EPS (Rs)	17.29	27.28	57.78

Profit after interest but before taxation and depreciation stood at Rs 1102.7 crore against Rs 708 crore reported the previous corresponding quarter, an increase of 55 per cent. A company press release said that the current order book position stood at Rs 46700 crore at the end of the quarter.

BHEL has invested in over Rs 1200 crore in creating additional capacity recently to meet the surging demand for power supply equipments in the country.

The company has targeted a capacity expansion from 6,000 Mw per annum to 10,000 Mw.

The company has also planned to further increase its capacity to 15,000 Mw by the 12th plan. It is also upgrading its technological base and introducing new technologies.

It has recently tied up to acquire new technology to produce thermal power equipment with supercritical parameters for the next higher rating 800 MW sets and above.