Bharat Heavy Electricals Ltd, India's top power equipment maker, said on Monday its 2010-11 provisional net profit rose 40%, sending its shares up more than 3%. State-run BHEL, which faces intensifying competition from Chinese and South Korean rivals, won new orders worth Rs 60,507 crore ($13.6 billion) in the fiscal year ended March 31, just above its target of Rs 60,000 crore.
It had an order backlog of Rs 1.64 lakh crore at the end of March, the company said.
Large order wins in late March helped the company overcome a slowdown, faced also by other infrastructure-focused Indian firms.
Last month, BHEL's chairman told Reuters the company may see some potential contracts pushed into the next fiscal year, while rival Larsen & Toubro warned in January it might not meet its full-year order book growth target.
BHEL said provisional net profit rose to Rs 6,021 crore in 2010-11 from Rs 4,311 crore a year earlier, while provisional turnover climbed 27% to Rs 43,451 crore.
India faces a peak-hour power shortage of nearly 14%, and utility companies are expanding capacity to satisfy a rapidly urbanising population and rising industrialisation.
The country aims to halve its peak-hour power deficit within two years and add generation capacity of 100,000 MW during 2012-17, but delays relating to land acquisition, environmental issues and coal sourcing have hampered growth in recent months.
BHEL, which earns 70% of its revenue from power equipment, is also trying to boost its business in the transmission and transportation equipment segment, where it sees high growth.
Shares in BHEL, valued by the market at $23.2 billion, rose as much as 3.7% after the results were announced. At 1.30 pm (0800 GMT), the stock was trading 3.4% higher at Rs 2,185 in a firm Mumbai market.
The shares are, however, down more than 9% so far in 2011, compared with a 5% decline in the main stock index during the same period.
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