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BHEL Annual Profit Up by 50.7% in FY 2018-19

BHEL that made around 47,000 cr in revenue and around Rs 7,000 cr in profit in the year 2012 has really been struggling to keep it's losses under check since past a few years, however, company's current year result shows some light at the end of the tunnel 

New Delhi: Bharat Heavy Electricals Limited (BHEL) has registered remarkable growth in its profitability with Maharatna's net profit up by 50.7% in FY'19.  BHEL had made a profit of 7000 Cr in 2012 but the company's shares started falling from that year onwards. So much that in 2017 BHEL was rapped by the comptroller and auditor general (CAG), for its dismal performance in the last five years. However, 2019 looks to be a story of improvement with the company's numbers showing better on books.

Jump in Profits: Net profit up by 50.7%

The Maharatna has entered several new business areas in fiscal 2018-19, ending the year with significant traction in growth drivers. During the year, the company achieved a profit before tax (PBT) of Rs.2,058 Crore, compared to a PBT of Rs.1,585 Crore in the year before, registering a surge of 29.8%. Net profit (PAT) for the year stands at Rs.1,215 Crore, against Rs.807 Crore in the previous fiscal, a 50.7%  jump. Earning Per Share (EPS) for FY18-19 is Rs.3.35 as against Rs.2.20 in FY17-18, up by 52.3%. The top line has also grown by 5.4% to Rs.29,349 Crore, as against Rs.27,850 Crore in the previous year.

2018-19

2017-18

% change

Turnover

29349

27850

5.4%

Profit Before Tax (PBT)

2058

1585

29.8%

Profit Before Tax (PAT)

1215

807

50.7%

Earning Per Share (EPS)

3.35

2.20

52.3%

 Total dividend outflow at 100%

An interim equity dividend of 40% has been paid for 2018-19, on the equity following a bonus issue in the year before, maintaining the impeccable track record of rewarding investors by paying dividends uninterruptedly for over four decades. In addition, the company has recommended a final dividend of 60%, subject to the approval of shareholders. With this, the total dividend for the year 2018-19 would stand at 100%, on the equity. Significantly, the total dividend outflow for the year 2018-19 shall be the highest during the last six years.

The pursuit of new initiatives

With a focus on core business, equal efforts are being made to increase the share of business from ‘Non-Coal’ areas to 50% from the current level of 30%. BHEL is pursuing new initiatives in various areas such as solar, water, defence, aerospace, electricity storage solutions, e-mobility, railway electrification, etc.  During the year, the company booked the highest-ever orders in its transportation business segment and spares and services; developed in-house India’s first state-of-the-art regenerative braking system for 5000 HP WAG-7 electric locomotive and delivered BHEL’s first 6,000 HP electric locomotive to Indian Railways. BHEL also received its maiden order for track electrification of rail route of 440 track km. The company made forays into the floating solar power business with the first commercial-scale order of 5 MW at Sagardighi, and the Electric Vehicle (EV) market with maiden order for installation of Solar-based EV Chargers along the Delhi-Chandigarh highway. In addition, the company has entered other new segments like lake purification, municipal water segment, PV plants with Battery storage, etc.

Significant overseas orders in the book

In overseas markets, despite challenging circumstances, BHEL has secured 50 orders for projects, products, systems and services from 17 countries in the current fiscal. This includes a prestigious order for the largest hydropower plant in Nepal, 4x225 MW Arun-3 Hydroelectric Project. BHEL is also well-placed in the opportunity for its first overseas solar EPC project - 32 MW Djermaya Solar Power project, Chad.