BHEL posted an over 14 per cent surge in provisional net profit at Rs 6,868 crore for the financial year 2011-12,helped largely by higher operational efficiencies and better supply chain management. The state-owned equipment majors turnover surged nearly 14 per cent to Rs 49,301 crore during the fiscal,as compared to Rs 43,337 crore in 2010-11.
BHEL expects growth in sales to be largely flat due to uncertainties faced by project developers.
The difficult market conditions have also led the government to rethink its follow-on public offer (FPO). BHEL has proposed to withdraw the prospectus submitted to market regulator Sebi and has been approved by the companys Board.
BHEL has decided not to go for FPO in the near future because of poor market conditions, said a senior government official on condition of anonymity.