With slowdown in Power sector will Maharatna like BHEL which showed a dip of 8% in net profit for FY2012-13 despite highest ever turnover prove there worth this year.

(By editor-in-chief)

The Indian power sector is witnessing a slowdown since the last few years.

Bharat Heavy Electricals Ltd  at its AGM  expressed that it will miss its 12th Plan revenue target of Rs 1 lakh crore as slowdown in the power sector has squeezed cash inflows.

The company also announced its net profit for last financial year dipped 8%, declining for the first time in eleven years, but it does not anticipate drastic problems as government orders continue to account for a bulk of its business.

The largest power equipment manufacturer in the country posted a net profit of Rs 6,485 crore in 2012-13 as compared to Rs 7,040 crore in the previous financial year. Turnover increased by a marginal 1% to Rs 50,015 crore from Rs 49,510 crore in previous year.

India’s largest power generation equipment manufacturer has a total outstanding of Rs.40,000 crore owed to it. Of this, 50% are dues that are yet to mature for payment because they are linked to project milestones.

The big question is that with slowdown on ambush will highly acclaimed  Maharatna not find an alternate measure to cope up with this and come out of the situation with which it is currently struggling with.