Analyst Meet / AGM     08-Apr-13
Press Meet
BHEL
FY13 order intake up 43% yoy to Rs 31528 crore
Bharat Heavy Electricals (BHEL) held a press meet on April 8, 2013 at New Delhi to announce its provisional results for the fiscal ended March 2013. The meeting was addressed by B Prasada Rao, CMD of the company.

Key takeaways of the meet

Bharat Heavy Electricals: Provisional Results-Summary*
1303 (12) Provisional 1203 (12) Actual Var (%)
Turnover 50015 49510 1
PBT 9231 10302 -10
PAT 6485 7040 -8
Note: Provisional Figures as given by the company  
 Figure is in Rs Crore
 Source: Company

Order inflow for the fiscal ended March 2013 was higher by 43% to Rs 31528 crore and of this power sector orders were Rs 22553 crore, industrial Rs 4086 crore, overseas Rs 2004 crore and spares & services Rs 2885 crore.

Order backlog as end of March 2013 was at Rs 115180 crore.

The company that has an order intake of Rs 10683 crore as end of Dec 2012 has bagged orders worth Rs 20845 crore in Q4FY13.

Of the total order placed for supply and installation of main plant equipment in India, the company has accounted for a market share of 67%. Order intake in FY13 in terms of MW was about 9627 MW.

Total export turnover (Physical + Deemed) for FY13 stood at Rs 23935 crore.

The company proposed to set up a green-field Mainline Electric Multiple Unit (MEMU) coach factory in Rajasthan and to set up power equipment fabrication plant at Sakoki (Bhandara Dist) of Maharashtra. The company signed MoU with the respective state governments in this regard. The company is also looking at the possibility of setting up an integrated facility for the manufacturing of Solar Photo Voltaic Systems, with the first phase envisaging manufacture of PV modules from Cells with ultimate objective of expanding to cover full value chain from silicon to cells.

In FY13 the company made a capital investment of Rs 753 crore towards augmentation of manufacturing capacity and modernization of facilities in manufacturing and project sites.

The company continued to provide thrust on cutting down cost of sourcing raw material and components with various practices such as revere auction, increase in vendor base, away centre fabrication etc. In addition, better inventory management has resulted in reduction of inventory levels from 100 days of turnover to 83 days, optimizing working capital management.

BHEL is positioning itself to remain a major contributor in power sector by enhancing the scope of offer for main plant packages on EPC basis by including civil works, electrical, CHP & AHP and water systems. Forays are being made for securing orders for standalone products based on state of the art technology like Flue Gas Desulphurization (FGD) for Coal with high sulphur content, CHP/AHP, desalination plants etc.

BHEL is increasing its scope of offer in Nuclear field with products beyond conventional island such as Balance of Plant Control, Control Centre instrumentation package etc.

The company is increasingly focused on to expand its offerings in the power sector by building EPC capability, consolidating Spares and Services business, and expanding industry businesses in the areas of Photo Voltaics, Ultra High voltage transmission, and transportation so as to steer the company through the period 2012-17 with the objective of achieving revenue growth from multiple streams,

The company continues to sharpen its focus on '6- Point' priority areas for action viz. Capability Enhancement, Accelerated Project Execution Product Cost Competitiveness & Quality, Diversification, Engineering & Technology and People Development aligned with its Strategic Plan initiatives to sustain its leadership in its areas of operations.

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