July 26 (Bloomberg) -- Bharat Heavy Electricals Ltd., India’s biggest maker of power-plant equipment, said first-quarter profit rose a better-than-expected 13 percent as demand gained for electricity and locomotives.
Net income climbed to 9.2 billion rupees ($165 million) in the three months ended June 30 from 8.16 billion rupees a year earlier, the company said today in a statement. The median profit of 34 analyst estimates in a Bloomberg survey was 8.2 billion rupees. Sales gained 18 percent to 87.4 billion rupees.
Prime Minister Manmohan Singh plans to spend as much as $300 billion in the five years to March 2017 to boost generation capacity and reduce blackouts to revive economic growth from the slowest pace in three years. Indian Railways, Asia’s oldest network, plans to borrow 150 billion rupees ($3 billion) next year as it adds more trains and replaces old coaches and wagons, then Rail Minister Dinesh Trivedi said in May.
Orders reached 1.33 trillion rupees at the end of the quarter, New Delhi-based Bharat Heavy said in the statement. India’s cabinet last week revised the duty structure on imported power equipment, levying a combined 21 percent duty on purchases from overseas, according to CNBC TV18 news channel. The decision is expected to help Bharat Heavy regain market share from Chinese suppliers, including Shanghai Electric Group Co. and Dongfang Electric Corp.
The shares rose as much as 1.5 percent to 219.45 rupees and traded at 217.90 rupees as of 1:37 p.m. in Mumbai. The stock has declined 8.8 percent this year, compared with an 8.8 percent gain in the benchmark Sensitive Index.
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