New Delhi: Helped by improved operational efficiency, Bharat Heavy Electricals Ltd (Bhel) today posted 14 percent jump in net profit at Rs 6,868 crore for the financial year ended March 2012. It had a net profit of Rs 6,011 crore in 2010-11.
    
However, the state-owned power equipment major's order book fell to Rs 22,096 crore last fiscal, as against Rs 60,000 crore in 2010-11 because of sluggishness in the sector.
    
Bhel's turnover, meanwhile, rose nearly 14 percent to Rs 49,301 crore in 2011-12 period, as compared to Rs 43,337 crore in 2010-11.
    
"We optimised our designs and improved our supply chain, among others. There was better operational efficiency (in last fiscal). Also, sheer volumes (of equipment delivered) helped in higher profit," Bhel Chairman and Managing Director B Prasada Rao told reporters here.
    
In 2011-12, the entity is estimated to have seen orders for about 3,000 MW equipment. The power sector in India witnessed a sharp slowdown during 2011-12 due to many issues including coal allocation and environmental clearance, Rao noted. At the end of 2011-12 fiscal, Bhel had cumulative orders worth Rs 1,34,681 crore.
    
Expressing optimism that power sector has good potential, Rao said the company expects to see orders of about 15,000 to 16,000 MW in the current fiscal. "We expect to get 7,000 to 8,000 MW equipment orders in the first quarter (of current fiscal) itself," he added.

Bhel anticipates increasing its annual turnover to about Rs 50,000 crore this fiscal. On future plans, Rao said the company would focus more on oil and gas, transportation and defence sectors.
    
The entity had cash reserves of Rs 6,800 crore at the end of March 2012 and the money would be mainly utilised for operational activities and capital investments.
    
Rao said that "unforeseen turmoil in various parts of the globe" impacted the company's international business prospects especially in the Middle East & North Region. Bhel has presence in many countries and 7-8 percent of total revenues are from exports.


(Agencies)