BHEL order book to touch Rs 55k crore

Bharat Heavy Electricals (Bhel) has posted a jump of over 22% in its net profit this year. BHEL chairman and MD K K Ravi Kumar, Chairman and Managing Director, BHEL
Ravi Kumar says the company is now looking forward to announce its biggest order ever for six major power plants with a capacity to generate 600 mw each. Mr Kumar shares the company’s growth plans.

Your net profit has been below market expectations. What caused such subdued numbers?
There is an inventory of about nine months. So, whatever raw materials we have purchased up to August, 2008, we are using up to May 2009. So, even though there is sales growth, but there is not much value addition. During this year, we’ll do a 20-25% sales growth and a 25-30% profit growth. I am quite confident of exceeding our sales target this year and our profits will rise more than 30%.

How does the order book look like? Has there been a slowdown in the order inflow at all?
In fact, it has increased. Our guidance initially for the year was Rs 50,000 crore. But now, it must be more than Rs 50,000 crore. It may be coming to Rs 55,000 crore during the financial year.

So you’re increasing your guidance there, but can you give us a break up from where the orders are coming?
This year, in our first quarter, we’ve booked orders from the private sector. 100% orders have been booked from the private sector. I think, the government orders will come in the second quarter and we are quite confident of reaching Rs 55,000-crore order booking in the financial year.

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