BHEL Q3 net profit jumps 64% to RsRs153 cr

State-run power equipment maker Bharat Heavy Electricals has reported a 64 per cent year-on-year growth in its net profit at Rs153.19 crore for the quarter ended December 2017.

Profit for the October-December quarter of the previous fiscal stood at Rs93.54 crore, the company said.

Operating profit in Q3 grew 31.9 per cent to Rs295.4 crore and margin expanded by 100 basis points to 4.5 per cent compared to year-ago.

Turnover for third quarter stood at Rs6,494.44 crore, compared to Rs6,187.48 crore during the corresponding period previous fiscal.

For the April-December 2017-18 period, the company reported a standalone net profit of Rs349.43 crore against Rs280.31 crore in the same period a year ago.

In the first nine months of this fiscal, its turnover stood at Rs18,017.62 crore (net of excise duty) compared to Rs18,261.01 crore in the year-ago period.

"Prudent strategies of fast execution and resource optimisation measures, concerted efforts for revival of stranded projects, have begun reflecting in the results," BHEL chairman and managing director Atul Sobti said.

He further said that the next wave of growth will be engineered with a focus on enhancing the order book in the diversified as well as conventional areas.

The board of director at its meeting today approved payment of interim dividend at the rate of 40 per cent (Rs0.80 per share) for 2017-18.

The interim dividend shall be paid/dispatched on 28 February, it added.

Revenue from operations during the quarter increased 4.8 per cent to Rs6,626.4 crore compared to Rs6,321 crore in same period last year.

BHEL said its profitability was boosted by operational performance but the growth restricted by higher other expenses that increased 52 per cent YoY.

Its power business, which contributed 80 per cent to total revenue, showed 5 per cent growth year-on-year at Rs5,355.81 crore with EBIT (earnings before interest & tax) rising 31.3 per cent in Q3.

Industry segment registered a 16.8 per cent decline at Rs1,138.63 crore in Q3, with EBIT at Rs40.44 crore during the quarter against EBIT loss at Rs118 crore in previous year.