BHEL Q1 profit doubles to Rs 156 cr

State-run Bharat Heavy Electricals (BHEL) has reported a quantum jump in profitability and order booking in the first quarter of fiscal 2018-19. The company has registered a significant jump of 109 per cent in its profit before tax at Rs 226 crore, compared to Rs 108 crore achieved in the corresponding quarter of the previous fiscal.

Profit after tax has increased to Rs 156 crore compared to Rs 81 crore in Q1 FY 17-18, up by 93 per cent. Significantly, maintaining the trend of topline growth, BHEL has recorded a turnover of Rs 5,790 crore, against Rs 5,355 crore recorded in the corresponding period last year, an increase of over 8 per cent. Concerted efforts resulted in order booking to increase by two and a half times to Rs.4,371 Crore, compared to Rs.1,744 Crore in the corresponding quarter last year.

This performance has been made possible through prudent strategies of accelerated execution, cost control and resource optimisation measures. The next wave of growth is being engineered with a focus on enhancing the order book in diversified as well as conventional areas, coupled with efforts to further enhance the executable order book. Prudent strategies of garnering a higher market share in a shrunken and highly competitive business environment have also paid rich dividends and BHEL has a total order book of around Rs.117,000 Crore, at the end of the first quarter of the current fiscal. Major orders won in the first quarter of FY2018-19 include two significant orders for emission control equipment from Telangana State Power Generation Corporation (TSGENCO), involving supply and installation of Flue Gas Desulphurization (FGD) systems for control of SOx emissions at TSGENCO’s 1x800 MW Kothagudem Thermal Power Station (TPS) and 4x270 MW Bhadradri TPS in Telangana.

Significantly, enhanced thrust on enlarging non-coal business has resulted in an upsurge with order inflows in the industry sector business segment. Notable orders booked during the quarter include 1x120 MW Blast furnace/ coke oven gas based captive power plant from Tata Steel; 20 MW Solar Photovoltaic (SPV) power project from Gujarat Alkalies & Chemicals Limited, and 10 MW SPV project from Gujarat State Fertilizers & Chemicals, among others.