 "BHEL net profit slips again")
The government-owned company attributed it to a decline in new orders, slowing on implementation of existing projects and large dues from customers.
The net profit was Rs 1,844 crore during the quarter against Rs 3,237 crore in the corresponding period of 2012-13. Total income in the quarter fell 22 per cent to Rs 15,432 crore.
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For the year ended March, net profit declined 48 per cent to Rs 3,502 crore as compared to Rs 6,693 crore during the previous financial year. This is a consecutive drop in annual profit after sustained growth in it for 11 years. BHEL had reported an eight per cent drop in net profit to Rs 6,485 crore in 2012-13. Total income also dropped 19 per cent, to Rs 40,801 crore for FY14.
At the end of March, its customers owed Rs 28,200 crore to BHEL, marginally down from Rs 29,370 crore at the end of last year. Beside, the company had inventory worth Rs 9,808 crore in FY14, down from Rs 11,869 crore a year before. Receivables and inventory together were 98 per cent of consolidated net sales in FY14, up from 87 per cent last fiscal. This led to a 76 per cent increase over a year in FY14 total borrowings, to Rs 4,610 crore. The company, however, remains debt-free on a net basis, with cash and bank balances of a little over Rs 12,000 crore.
The company told the BSE exchange: “The merger of Bharat Heavy Plates & Vessels with the company with effect from August 30, 2013, has impacted profit for the quarter by Rs 21 crore and the annual profit by Rs 186 crore.”
“Profit impact is due to low volumes. Certain ongoing projects have got impacted as the Indian power sector continues to be besieged with issues relating to fund constraints, land acquisition, clearances and coal linkages,” it had said earlier.