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Bharat Bijlee Annual Report 2023 Summary

Updated: Oct 7, 2023

  • The Company, delineated into Power Systems and Industrial Systems sectors, has marked several milestones in its business trajectory.In the Power Systems division, focused on the design, commissioning, and marketing of power transformers and maintenance products, a steadfast commitment to project quality and execution excellence has fostered significant growth.

  • The Power Systems division has witnessed a 6% increase in revenue and a substantial boost in segmental profit, amounting to ₹4911.26 lakhs from ₹3021.19 lakhs in the preceding year

  • On the other hand, the Industrial Systems sector has engaged in the development, marketing, and manufacturing of various electric motors and magnet technology machines, coupled with the engineering and provision of drives and automation solutions. Noteworthy advancements have been seen in international collaborations and product innovations, like the introduction of the SynchroTorq® servo motor range.

  • The Industrial Systems sector division recorded an 18% revenue upswing and an enhanced segmental profit of ₹11871.72 lakhs, up from ₹9556.92 lakhs last year.

  • Company Performance for FY 2022-23:

    1. Transformer Business:

      1. Registered a 4% growth for FY 2022-2023, recovering from a period of stagnant demand over the past decade.

      2. The focus on non-tendered business and exploring new markets has proved beneficial.

      3. Anticipates increased demand due to the government's emphasis on power sector reforms and renewable energy sources.

    2. Motor Business:

      1. Witnessed a growth of 16% over the previous year, attributed to geographical expansion and strengthening the dealer network.

      2. Noted as having one of the highest product availability rates, thanks to a refined supply chain.

      3. Concerns remain regarding volatile raw material prices and increased competition.

    3. Projects Division:

      1. Experienced substantial growth, nearly 400%, partly due to low billing in FY 2021-2022 caused by COVID-19.

      2. Achieved several milestones, including a breakthrough in the GIS substation space and high-quality project executions.

      3. Foresees challenges due to fluctuating raw material and metal prices and an erratic dollar-to-rupee exchange rate.

    4. Drives and Automation:

      1. Topline grew by 38%, with a focus on e-mobility aligning with the government's zero-emission vision for 2070.

      2. Progress in IIOT solutions for predictive maintenance and OEE monitoring.

      3. Faced supply chain challenges, especially concerning semiconductors and electronic cards.

    5. Magnet Technology Machines:

      1. Recorded a growth of 39%, although facing margin pressures and reduced exports due to competition and geopolitical tensions.

      2. Positive reviews for in-house developed servo motors that cater to various industries.

  • The company experienced a notable financial uplift this past fiscal year, with a 12% surge in sales and services income, amounting to ₹141849.62 lakhs compared to ₹126573.97 lakhs the previous year.

  • Moreover, the profit before tax soared to ₹11135.90 lakhs, a significant increase from last year's ₹7455.79 lakhs. Despite a 5% rise in finance costs (reaching ₹2206.80 lakhs) due to augmented working capital needs and global monetary policy shifts, the company boosted its free reserves by ₹6433.35 lakhs, attaining a total of ₹57134.14 lakhs as of March 31, 2023.

  • Looking forward, the company acknowledges potential risks, including entrenched inflation and volatile global demands, which might impede export sectors and bring about disruptions in various fronts like supply chains and financial markets.

  • Nevertheless, a silver lining persists with the Indian government's initiatives promoting growth and capital expenditure, possibly creating a favourable environment for the company's progress. The resolution of geopolitical tensions and India's emergence as a global manufacturing hub could further accentuate this growth trajectory.



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