Public sector power equipment maker Bharat Heavy Electricals (BHEL) witnessed a major turnaround in performance last financial year, beating the trend where engineering firms faced difficulties in getting new orders amid a difficult business environment.
In 2014-15, BHEL secured orders worth Rs 30,814 crore, an increase of 10 per cent over last year, with about 89 per cent of total orders in power sector coming on an EPC basis, meaning that the company would set up the entire project.
“This has helped BHEL retain its leadership position with 72 per cent market share for yet another year. The company also joined the elite club of global giants having an installed base of over 150 GW of power generating equipment,” the company said in a statement.
During 2014-15, BHEL commissioned/ synchronised 11,941 mw power plants in domestic and international markets. It bagged Rs 24,873 crore worth of orders from the power sector (22 per cent increase) and Rs 5,221 crore worth of orders from the industry segment (4 per cent growth). The company booked Rs 720 crore orders for exports and ended the year with a total order book of Rs 1,01,159 crore.
The improved business performance came as its financials continued to indicate a slowdown in the market due to regulatory constraints and lack of demand from developers.
The company reported a 62 per cent drop in net profit at Rs 1,314 crore for 2014-15 against Rs 3,461 crore profit in 2013-14. Total turnover during 2014-15 declined to Rs 30,806 crore from Rs 40,338 crore.
“The profit impact is due to low volumes as a result of the retarding force of last three years’ market shrinkage due to issues relating to coal linkages, fund constraints, land acquisition and clearances,” the company statement said.
“The market seems to be improving and we hope to clock better numbers this financial year,” said an official involved in the decision-making process of BHEL.
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