BHEL: Powerful position
A strong order book and better execution helped Bharat Heavy Electricals Ltd (BHEL) report a robust 46.3 per cent y-o-y growth in revenues at Rs 10,540 crore for the March 2009 quarter. Since BHEL maintains a raw material inventory of six-nine months, it did not gain from the decline in metal prices seen in recent months; its raw material cost for the quarter was up nearly 80 per cent. As a result its opm dropped by over 300 basis points y-o-y to 18.5 per cent. However, BHEL could reduce other expenses and employee costs by 20 per cent each even as it made provisions for wage revisions. At the net level, profits grew 21 per cent to Rs 1,347 crore.
For 2009-10, margins could improve by 200-250 basis points on the back of lower commodity prices and the absence of provisioning for wage revisions. The benefits of increased capacity (up 60 per cent to 10,000 Mw in March 2009) will also help. Besides, BHEL is expanding its vendor and sub-contractor base to strengthen its supply chain, all of which put together should lead to better economies of scale.
Analysts expect revenues to grow as 22-25 per cent and net profit to go up 30 per cent in 2009-10. BHEL’s order backlog was strong at Rs 117,000 crore, over four times last year’s revenues. However, new order inflow will be an important number to watch this year: The BHEL management had provided a guidance of Rs 50,000 crore of new orders this year, which is nearly Rs 10,000 crore lower than last year.
At Rs 2,118, the stock is up 32 per cent in the last month as it will be a key beneficiary of any economic revival and increased capex in the power sector. At the current levels, it is trading at 24 times its estimated 2009-10 earnings, reflecting rich valuations.
ref:
http://www.business-standard.com/india/news/bhel-powerful-position/359465/
Thursday, May 28, 2009
Wednesday, May 27, 2009
BHEL Q4 net up 22% at Rs 1,347 cr
4 net up 22% at Rs 1,347 cr
Bharat Heavy Electricals Limited (BHEL) reported a rise of 21.35 per cent in the net profit to Rs 1,347 crore in the three months ended March 31, 2009 as against Rs 1,110 crore in the corresponding quarter in the previous year.
The equipment major reported nine per cent increase in net profit for 2008-09 at Rs 3,138 crore as compared to Rs 2,859.30 crore in 2007-08. Net sales were up 35.4 per cent at Rs 26,234 crore in 2008-09 compared to Rs 19,365.50 crore in 2007-08.
BHEL also informed the Bombay Stock Exchange that the board of directors of the company at its meeting has recommended a final dividend of 80 per cent in addition to the interim dividend of 90 per cent already paid.
ref:
http://www.business-standard.com/india/news/bhel-q4-net22at-rs-1347-cr/62974/onBHEL Q
Bharat Heavy Electricals Limited (BHEL) reported a rise of 21.35 per cent in the net profit to Rs 1,347 crore in the three months ended March 31, 2009 as against Rs 1,110 crore in the corresponding quarter in the previous year.
The equipment major reported nine per cent increase in net profit for 2008-09 at Rs 3,138 crore as compared to Rs 2,859.30 crore in 2007-08. Net sales were up 35.4 per cent at Rs 26,234 crore in 2008-09 compared to Rs 19,365.50 crore in 2007-08.
BHEL also informed the Bombay Stock Exchange that the board of directors of the company at its meeting has recommended a final dividend of 80 per cent in addition to the interim dividend of 90 per cent already paid.
ref:
http://www.business-standard.com/india/news/bhel-q4-net22at-rs-1347-cr/62974/onBHEL Q
Tuesday, May 26, 2009
BHEL bags order worth Rs 703 cr for power project
Bharat Heavy Electricals (BHEL) here, has bagged an order for the main plant package at the upcoming Bela Thermal Power Project (BTPP) in Maharashtra, involving a new rating unit of 270 MW.
In a press release here today, the company said the order worth Rs 703 crore for the greenfield power project located at Bela in Nagpur district, has been placed on BHEL by Ideal Energy Projects Limited.
The scope of work in the contract envisages design, engineering, manufacture, supply, erection and commissioning of boiler, steam turbine and turbo-generator, along with associated auxiliaries and state-of-the-art controls and instrumentation, including generator and unit transformers.
BHEL has fully established state-of-the-art technology for the manufacture of thermal setups to 1,000 MW rating, the release added.
Coming close on the heels of an order for a 600 MW thermal power plant of Korba West Power Company Limited in Chhattisgarh, the order from Ideal Energy Projects was a testimony to the confidence reposed by Independent Power Producers in BHEL's capabilities.
Major private sector customers too have been reposing confidence in BHEL, and in fiscal 2008-09, orders worth more than Rs 13,000 crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Limited, Adani Power, Tatas and ACC, among others, the release added.
ref:
http://www.sakaaltimes.com/2009/05/26123932/BHEL-bags-order-worth-Rs-703-c.html
In a press release here today, the company said the order worth Rs 703 crore for the greenfield power project located at Bela in Nagpur district, has been placed on BHEL by Ideal Energy Projects Limited.
The scope of work in the contract envisages design, engineering, manufacture, supply, erection and commissioning of boiler, steam turbine and turbo-generator, along with associated auxiliaries and state-of-the-art controls and instrumentation, including generator and unit transformers.
BHEL has fully established state-of-the-art technology for the manufacture of thermal setups to 1,000 MW rating, the release added.
Coming close on the heels of an order for a 600 MW thermal power plant of Korba West Power Company Limited in Chhattisgarh, the order from Ideal Energy Projects was a testimony to the confidence reposed by Independent Power Producers in BHEL's capabilities.
Major private sector customers too have been reposing confidence in BHEL, and in fiscal 2008-09, orders worth more than Rs 13,000 crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Limited, Adani Power, Tatas and ACC, among others, the release added.
ref:
http://www.sakaaltimes.com/2009/05/26123932/BHEL-bags-order-worth-Rs-703-c.html
Tuesday, May 19, 2009
Bhel may get orders worth Rs7,000 cr
Bharat Heavy Electricals Ltd (Bhel) expects as much as Rs7,000 crore of new orders in the first quarter as pending government projects are cleared following the Congress’ electoral victory. We have several orders in the pipeline, chairman K. Ravi Kumar said on Monday in a phone interview from his New Delhi headquarters.
ref:
http://www.livemint.com/2009/05/18235127/Corporate--Bhel-may-get-order.html?h=B
ref:
http://www.livemint.com/2009/05/18235127/Corporate--Bhel-may-get-order.html?h=B
Monday, May 18, 2009
BHEL Trichy asks subcontractors to up capacity
The Tiruchirappalli unit of Bharat Heavy Electricals Limited has asked its subcontractors to increase their capacity to 50 per cent from the current 32 per cent in order to to achieve a turnover of Rs 10,000 crore for the current financial year.
V Ananthakrishnan, executive director, BHEL – Tiruchy, said they had asked the subcontractors to increase their capacities to manufacture headers and panels since the requirement for these products would increase in the coming years. He wanted the firms to follow the just in time concept to avoid inventory buildup.
The number of subcontracting firms increased from 346 to 429 in the last one year.
BHEL Small and Medium Industries Association secretary M Variavel said while BHEL Tiruchi was planning to invest around Rs 1,200 crore by 2011-12, the vendors in and around Tiruchy would invest Rs 200-300 crore during the same period.
In the last two years, vendors invested around Rs 100 crore to import machines that automate welding of boiler support structures and to increase the capacity.
ref:
http://www.business-standard.com/india/news/bhel-trichy-asks-subcontractors-tocapacity/358484/
V Ananthakrishnan, executive director, BHEL – Tiruchy, said they had asked the subcontractors to increase their capacities to manufacture headers and panels since the requirement for these products would increase in the coming years. He wanted the firms to follow the just in time concept to avoid inventory buildup.
The number of subcontracting firms increased from 346 to 429 in the last one year.
BHEL Small and Medium Industries Association secretary M Variavel said while BHEL Tiruchi was planning to invest around Rs 1,200 crore by 2011-12, the vendors in and around Tiruchy would invest Rs 200-300 crore during the same period.
In the last two years, vendors invested around Rs 100 crore to import machines that automate welding of boiler support structures and to increase the capacity.
ref:
http://www.business-standard.com/india/news/bhel-trichy-asks-subcontractors-tocapacity/358484/
Sunday, May 17, 2009
BHEL establishes state of the art technology
BHEL has fully established state of the art technology for the manufacture of thermal sets up to 1,000 MW rating suited to Indian conditions using Indian as well as imported coal. It has also introduced new rating thermal sets of 270 MW, 525 MW and 600 MW to meet customer demand and orders for 86 numbers of 500 MW to 600 MW rating sets have been won by the company, so far.
Significantly, major private sector customers have been reposing confidence in BHEL and in fiscal 2008-09 itself, orders worth over INR 13,000 Crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Ltd., Adani Power, TATAs and ACC, among others.
In fiscal 2008-09, BHEL won orders worth INR 44,407 crore, in its Power Sector business segment, for 17,020 MW of power plants. This included the first ever orders for 800 MW supercritical boilers, 660 MW supercritical turbine generator sets and largest number of orders for 8 sets of 600 MW.
Significantly, 100% share of the R&M market for thermal sets was retained for the third successive year with orders of INR 2,770 Crore including supply of spares and services.
It is reported that BHEL has bagged an order worth INR 1,75 crore from Korba West Power Company Limited for the main plant package of the upcoming Avantha Bhandar thermal power project in Raigarh district of Chhattisgarh, involving one new rating unit of 600 MW.
However, the scope of work includes design, engineering, manufacture, supply, erection and commissioning of steam turbine, generator, boiler along with associated auxiliaries and state of the art controls and instrumentation for the power plant.
ref:
http://steelguru.com/news/index/2009/05/18/OTQ3NzA%3D/BHEL_establishes_state_of_the_art_technology.html
Significantly, major private sector customers have been reposing confidence in BHEL and in fiscal 2008-09 itself, orders worth over INR 13,000 Crore were placed on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power, Hindalco, HPCL Mittal Energy Ltd., Adani Power, TATAs and ACC, among others.
In fiscal 2008-09, BHEL won orders worth INR 44,407 crore, in its Power Sector business segment, for 17,020 MW of power plants. This included the first ever orders for 800 MW supercritical boilers, 660 MW supercritical turbine generator sets and largest number of orders for 8 sets of 600 MW.
Significantly, 100% share of the R&M market for thermal sets was retained for the third successive year with orders of INR 2,770 Crore including supply of spares and services.
It is reported that BHEL has bagged an order worth INR 1,75 crore from Korba West Power Company Limited for the main plant package of the upcoming Avantha Bhandar thermal power project in Raigarh district of Chhattisgarh, involving one new rating unit of 600 MW.
However, the scope of work includes design, engineering, manufacture, supply, erection and commissioning of steam turbine, generator, boiler along with associated auxiliaries and state of the art controls and instrumentation for the power plant.
ref:
http://steelguru.com/news/index/2009/05/18/OTQ3NzA%3D/BHEL_establishes_state_of_the_art_technology.html
Thursday, May 7, 2009
BHEL to pump Rs 12000 crore on capacity expansion
BHEL, country's premier engineering organization, is planning to pump Rs 12000 crore over the next four years to pick up equity in power projects and to strengthen its capacity.
The blue-chip company intends to enhance its capacity to 20000 MW, by 2011. Besides, it also plans to pick up a 26% stake in more power plants.
According to reports, the funding for the proposed investment will come from internal accruals.
BHEL's current manufacturing capacity can support power generation of 10,000 MW. It includes 2,500 MW of hydro electricity production, and 500 MW captive power plants for the industrial sector.
ref:
http://www.topnews.in/bhel-pump-rs-12000-crore-capacity-expansion-2162750
The blue-chip company intends to enhance its capacity to 20000 MW, by 2011. Besides, it also plans to pick up a 26% stake in more power plants.
According to reports, the funding for the proposed investment will come from internal accruals.
BHEL's current manufacturing capacity can support power generation of 10,000 MW. It includes 2,500 MW of hydro electricity production, and 500 MW captive power plants for the industrial sector.
ref:
http://www.topnews.in/bhel-pump-rs-12000-crore-capacity-expansion-2162750
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