New Delhi: Spurred by a 19% jump in orders, Bharat Heavy Electricals Ltd (Bhel) on Thursday reported a 6.29% growth in net profit for 2008-09 compared with a year earlier.
For the fiscal year ended 31 March, the net profit of India’s largest power equipment maker was Rs3,039 crore, against Rs2,859 crore in the preceding year. Its order book rose 19% to Rs59,687 crore and turnover was up 29% at a record Rs27,505 crore.
“We have made a provision for wage revision. Had we not made this provision, our net profit would have been up by 25%,” chairman and managing director K. Ravi Kumar said, adding that the company expects sales to grow 20-25% in the year to March 2010.
Bhel also said it has started the process of hiring 20,000 employees by 2012. “Around 12,000 people will retire by 2012. So there will be a net induction of 8,000 employees. Of the 20,000 people we want to recruit, we have already recruited 4,500,” said Anil Sachdev, director, human resources.
Bhel has an annual capacity of manufacturing power equipment that can produce 10,000MW of electricity. The company says it plans to raise this to 15,000MW a year by December 2009.
“The profit after tax was below expectations, but given the huge order-book position, this is the only company in the capital goods sector which has high visibility for the next two to three years,” said Madanagopal R., an equity research analyst at Mumbai-based Centrum Broking Pvt. Ltd.
In a related development, Bhel has identified a partner for making turbines with capacities of 700MW, 1,000MW and 1,600MW for its equal joint venture with Nuclear Power Corp. of India Ltd. Bhel is also open to giving the new partner some equity in the venture. Ravi Kumar declined to name the company, citing ongoing negotiations.
Bhel’s stock on Thursday rose 4.06% to Rs59.80 at close on the Bombay Stock Exchange.