Tentative financial result -BHEL

Today BHEL announced that they secure 89 percent EPC based power projects thereby retaining its leadership position with 72percent market share for the consecutive year. And BHEL commissioned 11,941 MW of power plant equipment- more than 10,000 MW 3rd year in a row. According to this  BHEL joined the elite club of select global giants having an installed base of over 150 GW of power generating equipment Expanding its offerings. Improved focus on project execution enabled the company record commissioning / synchronization of 11,941 MW of power plants in domestic and international markets in 20114-15. BHEL has been secured orders worth Rs.30,814 crore during 2014-15 an increase of 10% over last year from its diversified business segments covering both domestic and international markets. Orders in Power sector at Rs.24,873 cr. witnessed a 22% jump; and the most diversified Industry segment at Rs.5,221 cr. saw an increase of 4% in 2014-15. The Company booked Rs.720 crores orders for Exports and ended the year with a total order book of Rs 1,01,159 cr.

Bharat Heavy Electricals (BHEL) disappointed street with its provisional numbers for the financial year 2014-15. According to its tentative financial results (flash results) net profit fell 62 percent to Rs 1,314 crore during the year compared to Rs 3,461 crore in previous year.

BHEL recorded a turnover of Rs.30,806 crores (prov.) and a Net Profit of Rs. 1,314 crores (prov.) during 2014-15. Profit impact is due to low volumes as a result of the retarding force of last 3 years market shrinkage due to issues relating to coal linkages fund constraints, land acquisition, clearances, etc. Focus on cost optimization through increased localization of super critical technologies, higher value additions; increased vendor base and design optimization efforts aided the company in its margins. Company’s focus on cash realization during the year has resulted in retaining cash surplus situation.

A major milestone of the year was the commissioning of four power plants in overseas markets in Rwanda, Sudan, Ethiopia and Oman BHEL signed an MoU with HSL & MIDHANI and formed a consortium for P 75I submarines– a stepping stone towards indigenous submarine building programme BHEL built thermal sets continued to demonstrate efficient & superior performance. 27 sets registered Plant Load Factor (PLF) of over 90% and 77 sets between 80% - 90%.

 BHEL which ranks among the highest R&D spenders in the country in the engineering and manufacturing segment spent 3.26% of turnover on R&D in 2014-15 compared to 2.78% in 2013-14. Increased R&D efforts have led to filing of highest ever 450 patents / copyrights during 2014-15. As part of its endeavour to offer the most contemporary products & technologies to customers, BHEL has indigenously designed and developed a breakthrough Fuel Flexible Boiler design capable of firing both imported & indigenous coals Fiscal 2014-15 was a year in which BHEL has made significant progress in further consolidating its strengths and value propositions to emerge even more competitive for tapping opportunities in the next phase of economic growth of the country.