BHEL’s provisional net profit declines 62% in FY15

Bharat Heavy Electricals Ltd (BHEL) has reported an over 62 per cent dip in net profit for the just concluded fiscal, according to the flash results approved by its Board of Directors on Monday. “(The) profit impact is due to low volumes as a result of the retarding force of the last three years’ market shrinkage due to issues relating to coal linkages, fund constraints, land acquisition, clearances, etc,” the company said in a statement. Despite a dip in the profit and turnover, BHEL shares closed at ₹235 on the BSE on Monday, up 1.38 per cent over Friday’s closing price. The market expressed optimism as the company’s order book has grown. BHEL secured orders worth Rs. 30,814 crore during 2014-15, an increase of 10 per cent over last year from its diversified business segments covering both domestic and international markets. Orders in the power sector at ₹24,873 crore witnessed a 22 per cent rise. The company booked Rs. 720- crore orders for exports and ended the year with a total order book of over Rs.1.01 lakh crore. The company also said its margin had improved. “Focus on cost optimisation through increased localisation of super critical technologies, higher value additions; increased vendor base and design optimisation efforts aided the company in its margins,” the statement said. more at: http://www.thehindubusinessline.com/companies/bhels-provisional-net-profit-declines-62-in-fy15/article7074327.ece