NEW DELHI: State-run power equipment maker Bharat Heavy Electricals Ltd (BHEL) today posted 5.9 per cent rise in standalone net profit at Rs 115.42 crore for the quarter ended on September 30, 2017.
The company's standalone net profit was Rs 109 crore in the quarter ended on September 30, 2016, the PSU said in a statement, adding that profit in July-September 2017-18 is the highest second quarter profit achieved in last three years.
Total income in the quarter was Rs 6,782.08 crore compared to Rs 7,089.79 crore a year ago. The turnover (sales) for the second quarter of 2017-18 stood at Rs 6,168.36 crore compared to Rs 6,780.03 crore in the year-ago quarter.
"The growth in profitability has been made possible despite the provisions made for the increase in wages due to the impending wage revision," Atul Sobti, the Chairman and Managing Director of BHEL told PTI.
"The management has adopted multiple cost optimisation measures which are reflecting in these results. The turnover for the quarter has been maintained despite delays in taking- off of some held up projects." With the power sectorÂ’s biggest order, the 4,000 MW Yadadri Thermal Power Station worth around Rs 20,400 crore, taking-off, the company recorded a quantum jump in the value of orders under execution.
The company's strategies of executing projects on fast- track along with focus on enhancing order book in the conventional as well as diversified areas will be the growth drivers for BHEL in the coming future, he added.
The company had issued bonus 112.38 crore bonus shares in October this year. After bonus issue, the company's share capital consist of 367.14 crore shares of Rs 2 each.
The bonus issue diluted the earning per share to Rs 0.31 in the second quarter compared to 0.30 year ago. Prior to the dilution of earning without factoring in bonus issue, the earning per share stood at Rs 0.47 in second quarter compared to Rs 0.44 a year ago.
The company's standalone net profit was Rs 196.24 crore in April-December this fiscal, up from Rs 186.77 crore a year ago. The company's profit for the fiscal ended on March 31, 2017 was Rs 495.86 crore.