BHEL net jumps 39% on reduced raw material prices

A fall in raw material costs helped state-run power equipment maker BHEL post 39 per cent rise in its net profit at Rs 857.88 crore for
the second quarter of the current fiscal.

"There has been substantial saving on raw material cost during quarter ending September 30 which helped us recording 39 per cent jump in net profits," CMD BHEL B P Rao told reporters here.

"The raw material cost as percentage of gross turnover during the second quarter (July-September) this year is 58.3 per cent as against 62.8 per cent during the corresponding period last fiscal," Rao said.

Asked whether the company would be able maintain such saving on raw material cost in the third quarter, he said, "Definitely... there will be saving on the raw material cost in the current quarter. We are expecting to improve our margins by 200 basis points (2 per cent) in this quarter."

BHEL had an impressive orderbook of Rs 1,25,800 crore at the end of July-September quarter.

"We got orders worth Rs 950 crore. The overseas business contributes 10-12 per cent to company's revenues," he said.

ref:
http://economictimes.indiatimes.com/news/news-by-company/earnings/BHEL-net-jumps-39-on-reduced-raw-material-prices/articleshow/5154220.cms