BHEL loses on net profit, new orders; vendors to face woes
Updated: May 30, 2014 02:41:18pm
New Delhi, May 30 (KNN) Bharat Heavy Electricals Ltd (BHEL), India's largest manufacturer of power equipment, has reported a substantial fall in its net profit and new order bookings - a development which has quite a negative impact on the SME vendors of the state-owned company.
The government-owned company has a 43 per cent year-on-year decline in net profit for the financial year ended March 2014, a media report said.
According to the report, the net profit was Rs 1,844 crore during the quarter against Rs 3,237 crore in the corresponding period of 2012-13. Total income in the quarter fell 22 per cent to Rs 15,432 crore.
For the year ended March 2014, net profit declined 48 per cent to Rs 3,502 crore as compared to Rs 6,693 crore during the previous financial year.
BHEL had reported an eight per cent drop in net profit to Rs 6,485 crore in 2012-13. Total income also dropped 19 per cent, to Rs 40,801 crore for FY14.
At the end of March, customers owed Rs 28,200 crore to the company down from Rs 29,370 crore at the end of previous year.
It had inventory down from Rs 11,869 crore worth to Rs 9,808 crore in FY14. Receivables and inventory together were 98 per cent of consolidated net sales in FY14, up from 87 per cent last fiscal.
Poor financial performance of BHEL and the shrinking order-book would have an affect on the company's SME vendors.
The company which is engaged in the design, engineering, manufacturing, construction, testing and commissioning of power equipment, has 15 manufacturing units in different parts of the country including Hardwar, Jhansi and Hyderabad.
The power engineering major has been running outstandings of over Rs 500 crore to the MSMEs for at least two years. (KNN/ST)
The government-owned company has a 43 per cent year-on-year decline in net profit for the financial year ended March 2014, a media report said.
According to the report, the net profit was Rs 1,844 crore during the quarter against Rs 3,237 crore in the corresponding period of 2012-13. Total income in the quarter fell 22 per cent to Rs 15,432 crore.
For the year ended March 2014, net profit declined 48 per cent to Rs 3,502 crore as compared to Rs 6,693 crore during the previous financial year.
BHEL had reported an eight per cent drop in net profit to Rs 6,485 crore in 2012-13. Total income also dropped 19 per cent, to Rs 40,801 crore for FY14.
At the end of March, customers owed Rs 28,200 crore to the company down from Rs 29,370 crore at the end of previous year.
It had inventory down from Rs 11,869 crore worth to Rs 9,808 crore in FY14. Receivables and inventory together were 98 per cent of consolidated net sales in FY14, up from 87 per cent last fiscal.
Poor financial performance of BHEL and the shrinking order-book would have an affect on the company's SME vendors.
The company which is engaged in the design, engineering, manufacturing, construction, testing and commissioning of power equipment, has 15 manufacturing units in different parts of the country including Hardwar, Jhansi and Hyderabad.
The power engineering major has been running outstandings of over Rs 500 crore to the MSMEs for at least two years. (KNN/ST)
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