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| Image Courtesy: en.m.wikipedia.org |
Company now has a widespread network of 16 manufacturing
units, two repair units, four regional offices, eight service centers,
eight overseas offices, 15 regional centers, seven
joint ventures and infrastructure
to execute more than 150 project sites across India & abroad. It has augmented capacity to deliver up to
20,000 MW pa of power equipment. BHEL is
the largest manufacturer of power equipment in India. Company has indigenously
manufactured first sub critical set of 600MW in North Chennai last year. Apart from power sector they have exposure to
Industry, transportation, oil and gas and renewables (budding sectors).
Company has maintained its inventory better. Other liabilities has increased due to
reduction in advance from customers.
Debtor days has increased now to 290 days. This has shown an increasing trend since the last 4 years from 208 to 290 days showing the struggle the company has in collecting its bills. This has led to cash flow constraints which has led to borrowing increase of around 1200 cr. Company has sold its entire stake in Udangudi Power Corporation which was incorporated to build and operate super critical sets based on the request form Tamilnadu state government. Most of the subsidiaries of the company are turning in profits which is okay. Companies business continued to be dominated by order from PSUs in all segments. Company has a market share of 57% in power sector.
Debtor days has increased now to 290 days. This has shown an increasing trend since the last 4 years from 208 to 290 days showing the struggle the company has in collecting its bills. This has led to cash flow constraints which has led to borrowing increase of around 1200 cr. Company has sold its entire stake in Udangudi Power Corporation which was incorporated to build and operate super critical sets based on the request form Tamilnadu state government. Most of the subsidiaries of the company are turning in profits which is okay. Companies business continued to be dominated by order from PSUs in all segments. Company has a market share of 57% in power sector.
R&D spend increased by 4.4% compared to last year.
In house developed projects now constitute around 195 of the company
turnover. Company now has an IPR of 2170 out of which 385 were filed this year.
As per AR, power sector will continue to remain major
contributor with transportation and transmission emerging as the next big businesses.
Company is focusing towards building EPC capability and other industry
businesses which could erode its margins while diversifying its risk at the
same time.
As per the company, global competition and
subdued demand both in domestic and international markets result in competition
intensity. This could erode margins when raw material cost rises. Chairman has raised his hands saying that
most of his business is dependent on national and international level policy
decisions.
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