BHEL net up 70% in 2005-06

On the back of a 70 per cent growth in net profit at Rs 1,621 crore for 2005-06 from Rs 953 crore last fiscal, Bharat Heavy Electricals (BHEL) is planning a tie-up to access nuclear power generation technology from among the likes of GE, Alstom and Siemens.

BHEL is also planning a small to medium sized acquisition and is targeting firms in India and overseas.

Chairman and managing director A K Puri announced the provisional results for 2005-06 here on Monday. "We clocked a turnover of Rs 14,410 crore in 2005-06, registering a 39 per cent increase compared with Rs 10,336 crore for the last fiscal," Puri said. The turnover for 2005-06 is the highest year-on-year growth in the last three decades.

BHEL plans to leverage its cash reserves of over Rs 4,000 crore for the proposed acquisition. An internal group is working for the last two months to firm up the acquisition plan. It may also appoint consultants for this purpose.

"We are looking at acquisitions to provide us with new technologies and expertise, intellectual property rights, product extensions and market access," Puri said.

The possible target for getting technologies and intellectual property rights would be developed countries, while for extending market reach it would be developing countries, he added.

BHEL's earnings per share for 2005-06 stood at Rs 66.2 compared with Rs 38.95 for the corresponding period last fiscal clocking an increase of 70 per cent.

"The overall order inflow of Rs 18,937 crore has resulted in an outstanding order book of Rs 37,500 crore for execution in 2006-07 and beyond," Puri added.

The company's renovation and modernisation, spare and services businesses added Rs 1,853 crore as booking orders to the kitty.The BHEL scrip on the Bombay Stock Exchange (BSE) today closed at Rs 2,331.35, up Rs 33.30 or 1.45 per cent over Monday's close of Rs 2298.05.

The scrip touched a high of Rs 2,353 after opening at Rs 2,304.40. It touched a low of Rs 2,300 during the day.