STOCK MARKET DESK

Power equipment supplier Bharat Heavy Electricals (BHEL) has recorded a 17 per cent rise in net profit to Rs 2,815 crore in FY08 on the back of a 15 per cent jump in turnover at Rs 216.08 billion.

Its annual turnover has jumped two-and-a-half times from Rs 86.62 billion in FY04. “We aim to be a Rs 500 billion company by 2012,” said Chairman and Managing Director K Ravi Kumar.

During FY08, the company got orders worth Rs 502.65 billion, taking its order book to Rs 850 billion.

It has also formed an equal joint venture with power producer NTPC for setting up power plants and taking up engineering works. BHEL will also enter with an agreement with Nuclear Power Corporation of India (NPCIL) on Friday to set up nuclear power plants in India and overseas.

"There has also been a 1 per cent increase in cost of raw materials such as steel during the fourth quarter,” Kumar said.

According to analysts, higher wages and raw material prices were likely to result in lower profits in the fourth quarter of FY08 compared with the comparative previous quarter.

The joint venture would also take up engineering, procurement and construction activities for nuclear power projects in India and abroad, BHEL Chairman and Managing Director K Ravi Kumar told journalists.