BHEL posts Rs 138 cr profit in Q2FY17 after 14 quarters of negative topline growth

The company said strategic initiatives put in place by the new management have begun yielding results

Bharat Heavy Electricals Ltd (BHEL) registered a top line growth of 12 per cent at Rs 6,780 crore and profit before tax of Rs 138 crore against a loss of Rs 293 crore in the corresponding period last year. It is after 14 straight quarters of negative top line growth that BHEL has registered positive growth.
 
The turnover increased to Rs 6,780 crore in the September quarter from Rs 6,070 crore during the corresponding period last financial year.
 
The company said strategic initiatives put in place by the new management had begun yielding results and the company was well on its way to getting back on the growth trajectory.

 

“We are resolutely focused on achieving the immediate target of regaining growth. Specific steps of expeditious execution and cost-cutting, coupled with efforts to enhance executable order book, have been initiated by the company,” said Atul Sobti, the newly appointed chairman and managing director.
 
The company said as a part of the new shift in the corporate plans, it would be creating new verticals within the company to capitalise on massive infrastructure spending by the government of India. “Special focus would be on Indian railways, defence and other industrial products to drive the next wave of growth,” said the company.

 
BHEL would also focus on sustainable energy development by offering EPC solutions in solar and an environment-friendly supercritical technology in the thermal sector.
 
The company has an order book position of Rs 1,03,300 crore at the end of the second quarter of this fiscal. In the first half of the current fiscal, BHEL’s turnover has shown a double-digit growth of 19 per cent and profit after tax has increased to Rs 187 crore compared to a loss of Rs 130 crore in the corresponding period of the previous year.