New Delhi: State-run power equipment maker Bhel on Tuesday reported a net profit of Rs109 crore for the second quarter ended 30 September, helped by strategic initiatives taken by the new management. The company had reported a net loss of Rs180.78 crore for the July-September quarter last fiscal.

Total income has increased to Rs6,860.53 crore in the second quarter of current fiscal from Rs6,314.56 crore in the corresponding period last year, the company said in BSE filing.

“Strategic initiatives put in place by the new management have begun yielding results and the company is well on its way to get back on the growth trajectory," Bharat Heavy Electricals Ltd (Bhel) chairman and MD Atul Sobti told PTI.

Sobti said,"Holding on to our strengths and building new ones, we are resolutely focused on achieving the immediate target of regaining growth."

Attributing the reversal of negative growth trend to accelerated execution, he said that specific steps of expeditious execution and cost cutting, coupled with efforts to enhance executable order book, have been initiated by the firm.

As part of this, the company’s focus will be on creating new verticals to capitalise on the massive infrastructure spending by the government with a special focus on railways, defence and other industrial products to drive the next wave of growth.

Bhel has also been focusing on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector, he said.

In the second quarter, Bhel maintained the momentum of positive growth and profitability achieved in the first quarter of the current fiscal, with the company registering a topline growth of 12% and posting a profit before tax of Rs138 crore as against a loss of Rs293 crore in the same period last year.

In the first quarter, Bhel had recorded positive growth after reversing the trend of negative topline growth prevailing for the last 14 straight quarters.

In the first half of the current fiscal, Bhel’s turnover has shown a double-digit growth of 19% and profit after tax increased to Rs187 crore compared to a loss of Rs130 crore in the corresponding period last year.

The company has an order book position of Rs1,03,300 crore at the end of second quarter this fiscal.

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