BHEL eyes Rs50,000 crore worth orders in FY10
08 April 2009
Bharat Heavy Electricals Ltd (BHEL) has been a standout performer in the infrastructure stock space. K Ravi Kumar, CMD of said, "This year we closed with an order book of Rs 120,000 crore and we expect to get orders worth Rs 50,000 crore in FY10."
CNBC-TV18 shares with domain-b its exclusive interview with K Ravi Kumar
We had spoken with you few weeks back, you were confident of delivering solid sales growth of nearly 30 per cent for this year. Is your new order intake slowing down as you go into FY10 or still remains at the robust clip that has been for 2009?
This year we closed with an order book of about Rs120,000 crore that is outstanding orders and during the year we got about Rs60,000 crore worth of orders - Rs45,000 crore from power sector, Rs3,000 crore from spares and services, Rs10,000 crore from industry sector and about Rs3,000 crore from international operations. So we have booked the order for Rs60,000 crore.
Next year we have given a projection of Rs50,000 crore and definitely we are on track to get Rs50,000 crore. We have finished negotiation for certain orders in the last six days. So I think we should be able to go through the year with Rs50,000 crore order book.
How much of this Rs50,000 crore would be from NTPC and are you seeing any signs of a slowdown at NTPC which is one of your larger client?
We just negotiated an order with NTPC for 500 MW and we are expecting the bulk ordering during the financial year. We are also expecting two orders from Muzzafarpur. So with that I am quite sure that NTPC orders will continue to flow in and the total order that we are expecting from power sector is around Rs35,000 crore.
You guided us to about 25-per cent growth in profits in FY10 that against the single digit percentage performance for FY09. Can you walk us through what's going to contribute to this big jump in your bottomline?
Last year we have provided about Rs1,800 crore. To be precise we have provided about Rs1,770 crore towards wage revision and also the one-time gratuity arrears from Rs3.5 lakh to Rs10 lakh and the dearness allowance margin announced in the last two-three days of the financial year. We have provided that in our balance sheet.