By Raju Kumar
BHOPAL: Bharat Heavy Electricals Limited (BHEL) has experienced a significant turnover after a period of stagnation in orders and productivity. BHEL had been facing challenges in recent years, has reported notable improvements in its financial performance for the financial year 2023-24.
In the financial year 2022-23, BHEL Corporation generated an income of Rs 22,136 crores from operations. This figure rose by 3.5% to Rs 22,921 crores in 2023-24. Additionally, the company recorded a profit after tax of Rs 260 crores. The most remarkable aspect of BHEL’s recent performance is the dramatic increase in orders. Compared to Rs 23,548 crores worth of orders in 2022-23, BHEL secured orders amounting to Rs 77,907 crores in 2023-24, representing a 231% surge, clearly indicating a strengthening financial position for the company.
Among the various units of BHEL, the Bhopal unit has made significant strides. For the first time, BHEL Bhopal has achieved the top position in performance at the corporate level. This is a noteworthy accomplishment considering that the Trichy unit has historically held this title. The Executive Director of BHEL Bhopal, SM Ramanathan, expressed enthusiasm about these achievements. The Bhopal unit, often referred to as the Mother Unit, recorded a turnover of Rs 2,968 crores in the financial year 2022-23. This turnover increased by approximately 15% to Rs 3,403 crores in 2023-24. In terms of profit before tax, the Bhopal unit saw an increase from Rs 69 crores in 2022-23 to Rs 98 crores in 2023-24, marking a 42% rise.
The Bhopal unit also experienced a significant increase in orders. In 2022-23, the unit received orders worth Rs 3,320 crores. This figure surged by 87% to Rs 6,213 crores in 2023-24. Based on the substantial orders received last year, BHEL Bhopal has set an ambitious turnover target of Rs 4,275 crores for the financial year 2024-25.
BHEL has a rich history in heavy electrical production, which continues to be a source of pride. After India’s independence, there was an urgent need for self-reliance in energy production to support the country’s industrial development. To address this, BHEL was established in Bhopal in 1956, initially as a result of a partnership with the UK’s Associated Electrical Industries. This entity later evolved into Bharat Heavy Electricals Limited, widely known as BHEL. Over the years, BHEL has played a crucial role in setting up power plants and supplying equipments not only within India but also globally, especially in several countries across Asia and Africa.
As times have changed and according to market needs, BHEL has adapted by continuously improving the quality and design of its products. This adaptability has enabled the company to work towards making India self-reliant (Atmanirbhar) in energy and industry, while also striving to become a global leader in this field. In addition to traditional energy equipments, BHEL is making significant advancements in nuclear energy and environmentally friendly energy equipment.
The company’s commitment to innovation and quality has been a key driver of its recent success. BHEL has focused on enhancing the efficiency and reliability of its products, which has helped it secure large orders and maintain a competitive edge in the market. The company’s efforts to diversify its energy portfolio, including investments in renewable energy sources, have also positioned it well for future growth.
There have been discussions about the potential privatization of BHEL. However, considering the company’s current performance and favourable market trends, it appears that BHEL’s future is secure. The company’s recent achievements and strategic initiatives suggest that it is well-positioned to continue its growth trajectory.
BHEL’s resurgence in the past financial year is a testament to its robust strategic planning and execution. The significant increase in orders and improved financial performance of its Bhopal unit underscore the company’s strengthened position. As BHEL continues to innovate and adapt to market needs, it is poised to achieve greater heights in the coming years. The company’s focus on enhancing product quality, expanding its energy portfolio, and maintaining financial stability will be key to sustaining its growth and achieving its ambitious targets. (IPA Service)
