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New Delhi, May 23 Bharat Heavy Electricals Ltd (BHEL), which released its audited results for 2007-08 on Friday, has reported an over 3 per cent dip in net profit for the quarter ended March 31, 2008. Turnover for the quarter was up 4 per cent.

The company’s fourth quarter numbers have taken a hit primarily on account of increase raw material costs, higher provisioning done in employee wages and in meeting certain contractual obligations, company officials said.

The equipment major reported an 18 per cent increase in net profit for the fiscal 2007-08 at Rs 2,859.30 crore. Net sales were up 12 per cent at Rs 19,365.50 crore for the full financial year.

BHEL also informed the BSE that the board of directors of the company at its meeting has recommended a final dividend of Rs 6.25 a share of face value Rs 10 (62.5 per cent), in addition to the interim dividend of 90 per cent already paid.

The BHEL stock closed marginally lower at Rs 1,747.20 per share on the BSE on Friday.

BHEL’s cumulative order book for execution in 2008-09 and beyond stood at about Rs 85,500 crore, of which orders worth over Rs 50,000 crore were secured during the last fiscal itself. The big jump in the order book position was primarily on account of the Ministry of Power’s directive that all utilities place order for project execution before the end of the last fiscal with equipment suppliers such as BHEL and others.

BHEL is also getting into a pact with Nuclear Power Corporation of India to float a joint venture for manufacturing equipment for nuclear power plants. It is also expected to shortly incorporate a joint venture with NTPC Ltd to manufacture power equipment and offer EPC services to power producers.

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