India’s largest manufacturer of power generation equipment, Bharat Heavy Electricals Ltd (Bhel), said on Friday that fiscal third-quarter (Q3) profit gained 16% as state-run power producers placed more orders.
Net income rose to Rs772 crore, or Rs15.77 a share, in the three months ended 31 December from Rs667 crore, or Rs13.64, a year earlier, New Delhi-based Bhel said in an emailed statement.
Six analysts polled by Bloomberg had a median profit estimate of Rs860 crore. Sales rose 14% to Rs4,964 crore.
State-run Bhel is winning orders as the country prepares to increase its power generation capacity by more than half to 193,000MW in the next five years.
India is seeking investments of almost $200 billion (Rs7.88 trillion) to generate, transmit and distribute electricity and plug a widening shortfall.
The company will pay a mid-year dividend of Rs9 a share.
Bhel may win more than Rs35,000 crore of orders in the year ending 31 March, chairman Ashok Puri had said in September. The nation’s biggest power equipment maker is expanding its manufacturing capability.Power supply in India, Asia’s third biggest economy, lags demand by more than 13% during the peak hours of 6pm to 11pm. To narrow this gap, the government plans to set up eight large power projects, each generating at least 4,000MW.
Bhel shares rose 3.3% to close at Rs2,165 on the Bombay Stock Exchange on Friday. The stock has risen 77% in the past year.