Bhel earnings surge 22% to Rs 471 cr in 1st quarter

The state-run Bharat Heavy Electricals's (Bhel (BHEL.NS : 2228 -18.95)) Q1 PAT was up 22.42% at Rs 470.59 crore compared to Rs 384.41 crore in the corresponding period of previous year. Its income from operations increased 23.3% to Rs 5,799.59 crore against Rs 4,703.55 crore. Total income of the company rose to Rs 5,898.51 crore in the first quarter of the current fiscal against Rs 4,620.98 crore in the same period last year. The company's net sales went up 29.25% at Rs 5,595.65 crore from Rs 4,329.24 crore. For this quarter, the company has not made provisions for fringe benefit tax (FBT). "Consequent upon abolition of FBT in the Union Budget for the 2009-10 fiscal, no provision for FBT has been made for the quarter," the company said.

At the end of June quarter, Bhel release said it has an outstanding order book position of about Rs 1,24,000 crore. The company is expecting six new orders for power equipment with a capacity to generate 600 MW each by the end of this week, CMD K Ravi Kumar said. Shares of Bhel were at Rs 2,150.90, down 2.89%.

According to Bhel sources, Bhel has enhanced its manufacturing capacity to 10,000 MW per annum which is being further enhanced to 15,000 MW per annum during the financial year and 20,000 MW per annum by 2011 at a total investment of Rs 5,000 crore. The company has fully established state-of-the-art technology for manufacture of thermal sets up to 600 MW rating in the sub critical range and has the capability to manufacture sets up to 1,000 MW rating in the super critical range.