BHEL shares gain over new order, provisional results

BHEL expects new order growth to accelerate to 10 percent in the new fiscal year, giving it breathing room if projects continue to be delayed by procedural hold-ups.

The state-run firm on Monday posted a higher-than-expected 40 percent rise in provisional 2010/11 net profit, sending its shares up more than 3 percent, and said revenue in the year that started April 1 should rise to $10-$11 billion from $9.8 billion in the year ended March 31.

The revenue target will be met mostly from the existing order book, BHEL Chairman and Managing Director B. Prasada Rao told reporters, adding he expects new orders in 2011/12 to grow at least 10 percent against 2.5 percent growth in the previous fiscal year.

Shares in BHEL, valued by the market at $23.2 billion, rose as much as 3.7 percent after the results were announced. The stock closed 2.8 percent higher at 2,173.80 rupees in a firm Mumbai market.