State run BHEL?s order book inflows have crossed the Rs 50,000 crore mark in 2007-08. As against the order inflows of Rs 35,643 crore in 2006-07, BHEL?s orders inflow for fiscal 2007-08 have gone up to Rs 50,265 crore.
The company?s net profit rose 17% to Rs 2,815 crore in 2007-08, while its annual turnover crossed Rs 20,000 crore mark. The company?s turnover rose to Rs 21,608 crore in the year 2007-08, up 15% from Rs 18,739 crore in the previous year, BHEL chairman and managing director, K Ravi Kumar said. The net profit rose from Rs 2,415 crore in 2006-07 to Rs 2,815 crore in the last fiscal.
Ravi Kumar attributed the lower Q4 margins due to provisioning of wage increases. BHEL provisioned about 40% in wage increase besides some other contractual obligations. But as additional wage provisioning will not be required going ahead, the company expects order inflows of over Rs 40,000 crore in FY09.
BHEL said on Thursday that it was ready for competition from the Chinese equipment manufacturers. Ravi Kumar said his company was also in talks with the Anil Ambani controlled Reliance Power for supplying equipments to its ultra mega power projects.
?We are not afraid of competition and are ready to compete even with the Chinese manufacturers,? he told reporters at the company?s annual press conference.
Shares of BHEL plunged on Thursday after the announcement of provisional figures by the company. Shares of the company plunged Rs 112.50 or 6.07%, to trade at Rs 1,740, while the 30-share benchmark index, Sensex climbed 12.59 points, or 0.08%, to trade at 15,762.99. The stock has shown a fall of 12.38% over the week and 17.12% over a month.