BHEL-Hyd records Rs 1,755cr turnover

With growth in the power sector gaining momentum, public sector Bharath Heavy Electricals Limited's (BHEL) Hyderabad unit has registered a 27 per cent higher turnover at Rs 1,755 crore for the financial year ending March 31, 2004.

BHEL Hyderabad which builds turbines and other equipment for power plants had recorded revenues of Rs 1,378 crore in the previous year. The unit's export turnover also registered a 28 per cent growth and touched Rs 491 crore.

This upward trend is also evident in the current orders received by BHEL for 2004-05 which has touched Rs 2,514 crore when compared to an order book position of Rs 2,314 crore last year. The unit has posted a Rs 148 crore profit before tax (PBT) when compared to Rs 137 crore in previous year.

Addressing a media conference here on Tuesday, A N Jagadishwaran, executive director of Hyderabad BHEL, explained that VRS costs of Rs 30 crore, which was not planned at the beginning of the financial year, was the sole reason for the lower profit. The unit has also saved about Rs 48 crore through productivity improvement activities.

"We are sure of crossing the Rs 2,000-crore mark during the current year," Jagadishwaran added. BHEL envisages a turnover of Rs 2,700 crore by 2006-07. BHEL's focus on exports is another noted development, according to Jagadishwaran.

In the first ever export order on EPC (engineering procurement and construction) basis, BHEL received an order for two (70 mw each) advanced class turbines from the Petroleum Development Organisation of Oman. The first unit has already been commissioned and the second unit is scheduled to be commissioned this month.

In all, about 1,154 mw generation in different areas has been commissioned during 2003-04 against the Hyderabad unit's supply. "We are prepared to take up more such orders as our unit is capable of supplying equipment which is sufficient to build 4,000-4,500 mw capacity annually," he said.

among the new plans, the Hyderabad unit is actively working to form a joint venture with the NTPC for the operation and maintenance of thermal power plants in the country.

"We are soon going to sign an MoU to set up a joint venture company. We are awaiting clearances from the Government of India," he disclosed.