Bhel

The company showed a growth of 18.1 per cent in sales turnover to Rs 4,833.5 crore and a rise of 148.5 per cent in net profit to Rs 346.1 crore during the year to March 1996. As per the annual reports, the profit achieved by the company was largely due to better sourcing, design optimisation and prudent financial management. However, on careful scrutiny it is revealed that net profit for the year has been jacked up by a write back of Rs 270 crore from the provisions no longer required. As against this the company's wage bill also increased by Rs 355 crore to Rs 1036.6 crore on account of payment of arrears to employees, of over Rs 200 crore. During the year the company witnessed a growth in order book position. Customer commitments increased inventory by Rs 314 crore. This resulted in a rise in cash credit to Rs 149.05 crore from Rs 2.58 crore which was availed for financing imports. The high interest rates on bank borrowings and surcharge on cash credit increased the cost of finance by 8.6 per cent to Rs 112.91 crore. During the year under review the company developed energy efficient and dual mode 5000/4600 hp AC/DC locomotives indigenously. Order booking of Rs 4,682 crore during the year increased the year-end orders available for execution to Rs 8,350 crore. During the year the company made an entry into the Oman market by bagging a 30mw gas turbine-based power project. It also received orders for large capacity auto transformers from Malaysia, disc insulators from Egypt, and high pressure valves and mark IV control panels from the US.

 

Market price: 180, EPS Rs 14.14, P/E: 12.73