Bharat Heavy Electricals (BHEL) Quarter(Q4) Result Update:

Bharat Heavy Electricals (BHEL), the country’s largest power equipment manufacturer, has posted a 52 per cent drop in net profit during the fourth quarter ended March on slowdown in project execution. The company reported net profit of Rs 888.35 core during the quarter against Rs 1,844 core in the corresponding quarter in the previous financial year. Bhel said fiscal fourth-quarter profit declined 52% because of lower sales and other income.Net profit fell to Rs.888.35 core in the quarter ended 31 March from Rs.1,844.59 core a year ago. Net sales fell 15.8% to Rs.12,368.43 core from a year earlier.BHEL has posted a net profit of Rs 888.4 core in January-March quarter, down 52 percent from Rs 1,844.6 core in year-ago period. Net sales, during the quarter, also slipped 16 percent to Rs 12,368.4 core compared to Rs 14,755 core year-on-year.

The major decline in profit came despite a 10.2 per cent cut in expenses to Rs 11,286 core during the quarter. The company managed to pull down  employee benefit expense by 31 per cent to Rs 915 core from 1,320 core in the corresponding quarter in the previous financial year.Total income of the company also dipped 17 per cent to Rs 12,702 core during the quarter compared with Rs 15,320 core in the corresponding quarter of the previous financial year.      

For the full-year ended March, BHEL’s net profit was down 59 per cent to Rs 1,419.29 core from Rs 3,460.78 core in the corresponding quarter in the previous financial year. Total sales also fell by 23 per cent to Rs 29,541 core this financial year from Rs 38,388 core in 2013-14.

One of surprising element is its employee costs which was down 30.7 percent at Rs 915 cr against Rs 1,320 core. The board has recommended final dividend at 31 percent (Rs 0.62 per share) on the paid up share capital of the company, for the year 2014-Segment-wise, the company’s power business revenue was at Rs 10,240 core in the fourth quarter, against Rs 12,211 core in the corresponding quarter. Industry unit revenue was at Rs 2,755 core compared to Rs 3,221 core.

The company also said its board has recommended final dividend at 31 percent (Rs 0.62 per share) on the paid up share capital of the company for the year 2014-15.    

Bharat Heavy Electricals Limited (BHEL) has brought a turnaround in the hydro power sector by commissioning 6 hydro sets aggregating to 736 MW, accounting for 100 per cent of the hydro power capacity addition in the country during fiscal 2014-15.

 Notably, this is also the highest hydro capacity addition in a single year by BHEL in the last decade. The feat was achieved by successfully commissioning projects of three major Central utilities - NTPC, NHPC and SJVNL. The projects commissioned by BHEL include 2 units (200 MW each) of Koldam Hydro Electric Project (HEP), with which NTPC has made its maiden entry in the hydro sector. In addition, a 130 MW unit of NHPC's Parbati III HEP and 3 units of SJVNL's Rampur (68.67 MW each) were commissioned. Significantly, the two units of NTPC's 4x200 MW Koldam HEP were commissioned on consecutive days. The surface power house comprises 4 Francis turbines of 200 MW rating each, operating under a head of 131.2 metres.

 BHEL has the distinction of executing all the four hydro projects being presently developed by NTPC. Apart from Koldam, the other three hydro projects of NTPC, being executed by BHEL, are Tapovan Vishnugad HEP (4x130 MW), Lata Tapovan HEP (3x57 MW) and Rammam Stage-III HEP (3x40 MW). With the commissioning of the fourth unit of the 4x130 MW Parbati III HEP of NHPC, the 520 MW project has now become fully operational. 

BHEL has a long standing association with NHPC beginning with setting up of NHPC’s first hydro generating plant at Baira Siul (3x60 MW) in 1981. BHEL's contribution to NHPC's total generating capacity now stands at 1,884 MW. In addition, BHEL has commissioned the last three units of 68.67 MW each of Rampur HEP of SJVN Limited.