BHEL FY’11 profit jumps 40 pc to Rs 6,021 cr

Bharat Heavy Electricals Ltd (BHEL) on Monday reported a 40 per cent jump in net profit to Rs 6,021 crore in 2010-11 reaping the benefits of low technology costs and changes in accounting policy. Its net profit stood at Rs 4,311 crore a year ago.

“Localisation of technologies, continuous working on supply chain and lower material costs helped in good profit,” B Prasada Rao, chairman and managing director BHEL said while announcing the company’s provisional annual results. Rao attributed the higher revenues and profits to the change in the company’s accounting policy on provision for warranty obligation for construction contracts. “This has resulted in an increase in turnover by Rs 2,456 crore and increase in profit before tax at Rs 414 crore,” he said. The state run firm also posted a turnover of Rs 43,451 crore in 2010-11, which is a 27 per cent rise compared to Rs 34,154 crore in 2009-10 period. BHEL’s shareholders have been paid an interim dividend of 132.5 per cent while the earnings per share in the previous fiscal climbed to Rs 123 per share.


ref:
http://www.indianexpress.com/news/BHEL-FY-11-profit-jumps-40-pc-to-Rs-6-021-cr/771618/