BHEL expects financial improvement after election
India, New Delhi:Bharat Heavy Electricals Limited (BHEL) is expecting an improvement in profit after the election. This year, the power sector had affected by shortages of coal and gas supplies, delays in environmental approvals for power projects and lack of funds.
BHEL’s profit went down by almost 50% but the company is expecting the new government to form a favourable policy that would generate more orders, particularly from railways, solar power projects and oil companies.
The main unit in Bhopal received no business lately as the UPA-II government’s attempts to start new projects did not take off. Bhopal unit of BHEL produces transformers, switchgears, turbines and motors.
The total turnover of the company has been set at INR 48,000 crore ($ 8 billion). It declined to INR 40,366 crore ($ 6.7 billion) from INR 50,156 crore ($ 8.3 billion) in 2012 – 2013.
“The company has capacity to touch INR 9,000 crore ($ 1.5 billion) turnover. And the next year’s target of INR 5,000 crore ($ 830 million) business is not a tough task as INR 4,000 crore ($ 664 million) convertible orders are already in hand yet policy issues matter the most.“ a source claimed according to Business Standard.
Among all its units BHEL Bhopal has maintained its business by keeping cost of operations low and bringing down margins. “A total of INR 350 crore ($ 58 million) input savings helped the unit a lot.” the source said.
Source: Business Standard