BHEL net profit falls 8% to Rs 6,485 crore

BHEL net profit falls 8% to Rs 6,485 croreIndia's biggest maker of power-plant equipment, Bharat Heavy Electricals Ltd. (BHEL) has reported a fall of 8 per cent in net profit to Rs. 6,485 crore for the financial year 2012-2013.

The state-run company had recorded a net profit of Rs. 7,040 crore during the financial year 2011-2012, it said in a filing with the stock exchanges in the country. It also said that its total turnover rose form Rs. 49,510 crore in the previous financial year to Rs. 50,015 crore during 2012-13. BHEL said that its order inflow increased to Rs. 31,528 crore in the financial year compared to Rs. 22,096 crore recorded in the previous financial year.

The power industry in the country is facing several challenges including shortages in the coal and gas supplies, prolonged delays in obtaining environmental approvals for power and mining projects and low availability of funding. Experts say that the several orders were delayed by the customers of the company due to reasons like non-availability of the land difficulties in procuring equity funding by promoters. Issues relating to coal prices, power- purchase agreements and the state distribution networks have also affected power generation projects in the country.

The shares of the company were trading 2.84 per cent higher at Rs. 182.75 on the Bombay Stock Exchange (BSE).