BHEL regains growth & profitability

Surpasses 12th Plan Capacity Addition Target
Report by: 
EOI CORRESPONDENT
KOLKATA/NEW DELHI
1 Jun 2017

Bharat Heavy Electricals Limited (BHEL) has achieved double digit growth in its topline and bounced back into profit in fiscal 2016-17, ending the year with significant traction in growth drivers.
During the year, BHEL recorded a turnover of Rs 28,840 Crore, up 11% over the previous year - after reversing the trend of negative topline growth prevailing for the last three years. The company also returned to profitability with a Profit Before Tax (PBT) of Rs.628 Crore, compared to a loss of Rs.1164 Crore (IND-AS restated) in the last fiscal. Net Profit (PAT) stood at Rs.496 Crore, against a net loss of Rs.710 Crore (IND-AS restated) in the previous year.
An interim equity dividend of 40% has been paid for 2016-17, maintaining the track record of paying dividends uninterruptedly since 1976-77. In addition, the company has recommended a final dividend of 39%, subject to the approval of shareholders. With this, the total dividend for the year 2016-17 would stand at 79%.
Notably, enhanced focus on project execution has resulted in BHEL achieving a capacity addition of 45,274 MW during the 12th Five Year Plan period (2012-17), surpassing the target of 41,661 MW set by the government for BHEL, by 9%. With this, BHEL continues to remain the single largest contributor to the country’s power generation capacity addition.
BHEL secured orders worth Rs 23,489 crore during 2016-17 in its power, industry and export segments. This was achieved despite subdued business environment and global economic uncertainties. The company ended the year with a total order book of over Rs.1,05,200 crore.
A major highlight of the year was the largest ever export order, valued at US$1.5 billion (Rs.10,000 crore), for setting up 1,320 MW (2x660 MW) Maitree Super Thermal Power Project in Bangladesh. Significantly, won against stiff international competitive bidding, this is BHEL’s largest power project order in the international market.
During the year, BHEL-built thermal power generating sets generated an all-time high 549 Billion Units of electricity which was 58.2% of the total thermal power generated in the country. BHEL-built thermal sets continued to demonstrate world-class performance. 20 sets registered Plant Load Factor (PLF) of over 90% and 56 sets between 80%-90%. Significantly, 219 BHEL-make coal-based sets achieved an Operating Availability (OA) of more than 90%. 161 BHEL make coal-based sets clocked uninterrupted operation of more than 90 days. BHEL-built nuclear sets achieved a PLF of 77.5% and an OA of 78.9%.
Having achieved the immediate target of regaining growth, the company is now enhancing its focus on maintaining its leadership status in the power sector while diversifying in the non-thermal power segment and other new areas. As part of this, focus is on creating new verticals within the company to capitalize on the massive infrastructure spending by the Govt. of India, with a special focus on sustainable energy development by offering EPC solutions in solar and environment-friendly supercritical technology in the thermal sector, besides transportation, defence and other industrial products to drive the next wave of growth.