New Delhi, Apr 4: Power equipment maker Bharat Heavy Electricals Ltd has announced a 40 per cent rise in net profit to Rs. 6,021 crore in 2010-11 fiscal, driven by technological cost benefits and accounting policy changes.
 "We had another successful year. The company has taken a number of initiatives. Localisation of technologies, continuous working on supply chain and lower material costs helped in good profit," BHEL's chairman and managing director B. Prasada Rao said while announcing its annual results.
 In the 2009-10 fiscal, it had a profit of Rs. 4,311 crore.
 The state-run entity raked in the profit on revenues of Rs. 43,451 crore in the last fiscal, an increase of 27 per cent as compared to Rs. 34,154 crore in 2009-10 period.
 Rao said change in the company's accounting policy on provision for warranty obligation for construction contracts also pushed revenues and profits higher.
 "This (change in accounting policy) has resulted in an increase in turnover by Rs. 2,456 crore and increase in profit before tax at Rs. 414 crore," he said.
 BHEL's shareholders have been paid an interim dividend of 132.5 per cent while the earnings per share in the previous fiscal climbed to Rs. 123 per share.
 According to Rao, the firm is looking at business opportunities in the gas turbine segment in Japan.
 "We are exploring opportunities in that country (in Japan) with our joint venture partner GE for setting gas turbine projects, as they have a smaller gestation period or they can be set up quickly," he said.
 BHEL has earmarked a capital expenditure amount of Rs. 1,700 crore for the current financial year.
 Last fiscal, BHEL forayed into the Yemenese and Kenyan markets, mainly for supply of motors apart from entering Hong Kong and Turkey solar power markets.
 When asked whether the Middle East and North Africa crisis has impacted the company's business in the region, Rao said that most of the projects there are in final stages of implementation.
 "As far as new projects are concerned, there might be some delay as there is no activity as of now," he noted.
 Business from the Middle East account for less than one per cent of the firm's total revenues. BHEL secured orders worth Rs. 60,507 crore in 2010-11 and expects similar order book in the current fiscal also.
 "We anticipate good order book despite many power projects getting delayed due to delay in coal block allotments," Rao said.

Lastupdate on : Mon, 4 Apr 2011 21:30:00 Makkah time
Lastupdate on : Mon, 4 Apr 2011 18:30:00 GMT
Lastupdate on : Tue, 5 Apr 2011 00:00:00 IST