BHEL has ruled out any possibility of Follow-on Public Offer (FPO) and said the government may divest 10 per cent stake in the company through open market transaction.
However, the company did not specify whether it would be done through bringing in a strategic partner or through open offer in the market for divesting government’s 10 per cent stake that can fetch the government about Rs 11,000 crore at the current market value.
"We don't need to file Draft Red Herring Prospectus to market regulator SEBI, because we are not increasing the size of our paid up capital. The government would offload its stake from 67.72 per cent to 57.72 per cent," BHEL CMD K Ravi Kumar said in an interaction with reporters.
Asked about the time frame to divest government share, Mr. Kumar said, "I don’t think that it would be done the in the first tranche, which includes NHPC, OIL and NMDC. It would be done possibly in the second tranche in the next financial year."
"This is my understanding that the government would not divest its stake in BHEL this fiscal. But it is purely their prerogative. However, even if the government decides to do it now, it would take four to six months to convince the trade unions," he added.
ref:
http://www.hindu.com/thehindu/holnus/006200907261652.htm
Sunday, July 26, 2009
Friday, July 24, 2009
BHEL loses Rs 36K cr worth deals to Chinese competitors
Bharat Heavy Electricals Limited (BHEL) has lost Rs 36,000 crore woth of business to its Chinese counterparts in the last fiscal. Taking advantage of India’s open approach to foreign players, Chinese power equipment suppliers made full use of their higher range of products, grabbing a whopping 18,000 MW in private deals over the Indian firm.
“We have lost nearly 18,000 MW of private deals to Chinese suppliers. This is valued at approximately Rs 2 crore per MW crore,” BHEL chairman and managing director Ravi Kumar told The Indian Express.
During the months leading up to and including the 2008-2009 fiscal, Chinese suppliers were given enough space to install thermal power generators which maxed out at 300-600 MW, compared with the 250-500 MW range that Indian companies were limited to.
Allowing this to happen was India’s open approach to foreign players. This, coupled with the stronger Chinese yuan, allowed foreign suppliers to pinch a large portion of the market, usually dominated by BHEL, Kumar said and pointed out that the Central Electricity Authority has since levelled the playing field by allowing generators of all four ratings, thus resulting in BHEL earning 95 to 100 per cent of its projects from private vendors.
ref:
http://www.indianexpress.com/news/BHEL-loses-Rs-36K-cr-worth-deals-to-Chinese-competitors/493834
“We have lost nearly 18,000 MW of private deals to Chinese suppliers. This is valued at approximately Rs 2 crore per MW crore,” BHEL chairman and managing director Ravi Kumar told The Indian Express.
During the months leading up to and including the 2008-2009 fiscal, Chinese suppliers were given enough space to install thermal power generators which maxed out at 300-600 MW, compared with the 250-500 MW range that Indian companies were limited to.
Allowing this to happen was India’s open approach to foreign players. This, coupled with the stronger Chinese yuan, allowed foreign suppliers to pinch a large portion of the market, usually dominated by BHEL, Kumar said and pointed out that the Central Electricity Authority has since levelled the playing field by allowing generators of all four ratings, thus resulting in BHEL earning 95 to 100 per cent of its projects from private vendors.
ref:
http://www.indianexpress.com/news/BHEL-loses-Rs-36K-cr-worth-deals-to-Chinese-competitors/493834
Thursday, July 23, 2009
BHEL order book to touch Rs 55k crore
Bharat Heavy Electricals (Bhel) has posted a jump of over 22% in its net profit this year. BHEL chairman and MD K K Ravi Kumar, Chairman and Managing Director, BHEL
Ravi Kumar says the company is now looking forward to announce its biggest order ever for six major power plants with a capacity to generate 600 mw each. Mr Kumar shares the company’s growth plans.
Your net profit has been below market expectations. What caused such subdued numbers?
There is an inventory of about nine months. So, whatever raw materials we have purchased up to August, 2008, we are using up to May 2009. So, even though there is sales growth, but there is not much value addition. During this year, we’ll do a 20-25% sales growth and a 25-30% profit growth. I am quite confident of exceeding our sales target this year and our profits will rise more than 30%.
How does the order book look like? Has there been a slowdown in the order inflow at all?
In fact, it has increased. Our guidance initially for the year was Rs 50,000 crore. But now, it must be more than Rs 50,000 crore. It may be coming to Rs 55,000 crore during the financial year.
So you’re increasing your guidance there, but can you give us a break up from where the orders are coming?
This year, in our first quarter, we’ve booked orders from the private sector. 100% orders have been booked from the private sector. I think, the government orders will come in the second quarter and we are quite confident of reaching Rs 55,000-crore order booking in the financial year.
more at:
http://economictimes.indiatimes.com/Interviews/BHEL-order-book-to-touch-Rs-55k-crore/articleshow/4809754.cms
Ravi Kumar says the company is now looking forward to announce its biggest order ever for six major power plants with a capacity to generate 600 mw each. Mr Kumar shares the company’s growth plans.
Your net profit has been below market expectations. What caused such subdued numbers?
There is an inventory of about nine months. So, whatever raw materials we have purchased up to August, 2008, we are using up to May 2009. So, even though there is sales growth, but there is not much value addition. During this year, we’ll do a 20-25% sales growth and a 25-30% profit growth. I am quite confident of exceeding our sales target this year and our profits will rise more than 30%.
How does the order book look like? Has there been a slowdown in the order inflow at all?
In fact, it has increased. Our guidance initially for the year was Rs 50,000 crore. But now, it must be more than Rs 50,000 crore. It may be coming to Rs 55,000 crore during the financial year.
So you’re increasing your guidance there, but can you give us a break up from where the orders are coming?
This year, in our first quarter, we’ve booked orders from the private sector. 100% orders have been booked from the private sector. I think, the government orders will come in the second quarter and we are quite confident of reaching Rs 55,000-crore order booking in the financial year.
more at:
http://economictimes.indiatimes.com/Interviews/BHEL-order-book-to-touch-Rs-55k-crore/articleshow/4809754.cms
Wednesday, July 22, 2009
BHEL Q1 PAT seen up 42% at Rs 545.93 cr
Its net sales were seen up 24% at Rs 5367.05 crore versus Rs 4329.24 crore.
The company’s EBIDTA is seen up at Rs 627.98 crore versus Rs 373.71 crore.
Its OPM is seen at 11.55% versus 8.6$.
Strong revenue growth backed by higher delivery & robust order backlog of Rs 117500 cr
Q1 order inflows declined 50% at Rs 6800 cr YoY howeverorders from private sector has been strong
Order momentum expected to intensify over next 2 qtrs led by 12th plan ordering
Operating margins are likely to be better as staff provisioning related to sixth pay commission is over and higher capacity utilisation will lower overheads.
The corresponding quarter last year had a provision of Rs116cr for wage hike provisions.
Margin expansion is also likely to be driven by the positive impact of benign commodity prices.
Capacity additions to be watched out for
BHEL capacity to go up from 10GW to 15GW by Q3FY09-entire new capacity in thermal plants
ref:
http://www.moneycontrol.com/india/news/results/bhel-q1-pat-seen-42at-rs-545-93-cr/19/45/407
The company’s EBIDTA is seen up at Rs 627.98 crore versus Rs 373.71 crore.
Its OPM is seen at 11.55% versus 8.6$.
Strong revenue growth backed by higher delivery & robust order backlog of Rs 117500 cr
Q1 order inflows declined 50% at Rs 6800 cr YoY howeverorders from private sector has been strong
Order momentum expected to intensify over next 2 qtrs led by 12th plan ordering
Operating margins are likely to be better as staff provisioning related to sixth pay commission is over and higher capacity utilisation will lower overheads.
The corresponding quarter last year had a provision of Rs116cr for wage hike provisions.
Margin expansion is also likely to be driven by the positive impact of benign commodity prices.
Capacity additions to be watched out for
BHEL capacity to go up from 10GW to 15GW by Q3FY09-entire new capacity in thermal plants
ref:
http://www.moneycontrol.com/india/news/results/bhel-q1-pat-seen-42at-rs-545-93-cr/19/45/407
Monday, July 20, 2009
BHEL got orders of USD 2.1 billion in June - Mr Kumar
Reuters cited Mr K Ravi Kumar chairman of BHEL as saying that India's leading power equipment maker, Bharat Heavy Electricals got fresh orders worth INR 100 billion during April to June.
Mr Kumar said "This time all orders are from private sector. This is a good sign. Private sector is coming up in a big way.”
Mr Kumar said "This time all orders are from private sector. This is a good sign. Private sector is coming up in a big way.”
Saturday, July 18, 2009
BHEL cash-surplus, govt may bring in FPO next fiscal: CMD
BHEL on Thursday said its cash position is comfortable, but if the government wants to divest further equity through a follow-on public offer it could be done next fiscal.
"We are a cash-surplus company, but if the government wants to bring out an FPO (follow-on public offer), they can, but I think only in the next financial year," BHEL Chairman and Managing Director K Ravi Kumar told reporters.
He said the company has received orders worth Rs 10,000 crore during the April-June quarter, he said.
ref:
http://economictimes.indiatimes.com/News-by-Industry/BHEL-cash-surplus-govt-may-bring-in-FPO-next-fiscal-CMD/articleshow/4784140.cms
"We are a cash-surplus company, but if the government wants to bring out an FPO (follow-on public offer), they can, but I think only in the next financial year," BHEL Chairman and Managing Director K Ravi Kumar told reporters.
He said the company has received orders worth Rs 10,000 crore during the April-June quarter, he said.
ref:
http://economictimes.indiatimes.com/News-by-Industry/BHEL-cash-surplus-govt-may-bring-in-FPO-next-fiscal-CMD/articleshow/4784140.cms
Tuesday, July 14, 2009
BHEL bags order worth Rs 640 cr
Bharat Heavy Electricals Ltd today said it has bagged an order worth Rs 640 crore from Adhunik Power and Natural Resources Limited for setting up a thermal power unit in Jharkhand.
The power project is valued at Rs 640 crore and involves construction of a 270 MW power unit in Jamshedpur district of Jharkhand, BHEL said in a filing to the Bombay Stock Exchange.
The scope of work involves designing, engineering, manufacturing, supplying, erection and commissioning of steam turbine, generator and boiler, the filing added.
ref:
http://www.business-standard.com/india/news/bhel-bags-order-worth-rs-640-cr/67607/on
The power project is valued at Rs 640 crore and involves construction of a 270 MW power unit in Jamshedpur district of Jharkhand, BHEL said in a filing to the Bombay Stock Exchange.
The scope of work involves designing, engineering, manufacturing, supplying, erection and commissioning of steam turbine, generator and boiler, the filing added.
ref:
http://www.business-standard.com/india/news/bhel-bags-order-worth-rs-640-cr/67607/on
Saturday, July 11, 2009
BHEL plans JVs in nuclear, loco sectors
Bharat Heavy Electricals Ltd (BHEL) plans five joint ventures (JVs) in the nuclear sector and locomotive manufacturing. The company has decided to invest Rs 1,000 crore in a castings and forgings joint venture, Chairman and Managing Director K Ravi Kumar said.
BHEL has initiated talks with global giants in nuclear energy such as Areva of France, Toshiba of Japan, Westinghouse of the US and GE Hitachi for building reactors. For its forgings and castings JV, the public sector major is in discussions with Areva and Bharat Forge. The company had roped in UK’s Sheffield Forgemasters as technical partner in the venture, Ravi Kumar told Business Standard
source:
http://www.business-standard.com/india/news/bhel-plans-jvs-in-nuclear-loco-sectors/363567/
BHEL has initiated talks with global giants in nuclear energy such as Areva of France, Toshiba of Japan, Westinghouse of the US and GE Hitachi for building reactors. For its forgings and castings JV, the public sector major is in discussions with Areva and Bharat Forge. The company had roped in UK’s Sheffield Forgemasters as technical partner in the venture, Ravi Kumar told Business Standard
source:
http://www.business-standard.com/india/news/bhel-plans-jvs-in-nuclear-loco-sectors/363567/
Friday, July 10, 2009
BHEL mulls Rs 500-cr expansion, modernisation prog
Bharat Heavy Electrical Ltd has planned a Rs 500-crore Phase III expansion and modernisation programme of the Trichirappaly unit.
Talking to reporters yesterday, BHEL Trichirappaly Executive Director A V Krishnan said, the governing board of the public sector unit had approved a proposal for the expansion programme.
This would include setting up seven additional bases of 7,200 square metres each, and ultra-modern testing equipment before the end of 2011.
He said Rs 1200 crore was spent on expansion and modernisation in phase-I and phase-II.
The installed capacity of BHEL stood at 10,000 MW in 2007-08 after the phase-1 expansion and it would reach 15,000 MW after the phase-II programme, which was expected to be completed by September this year.
source:
http://www.business-standard.com/india/news/bhel-mulls-rs-500-cr-expansion-modernisation-prog/67238/on
Talking to reporters yesterday, BHEL Trichirappaly Executive Director A V Krishnan said, the governing board of the public sector unit had approved a proposal for the expansion programme.
This would include setting up seven additional bases of 7,200 square metres each, and ultra-modern testing equipment before the end of 2011.
He said Rs 1200 crore was spent on expansion and modernisation in phase-I and phase-II.
The installed capacity of BHEL stood at 10,000 MW in 2007-08 after the phase-1 expansion and it would reach 15,000 MW after the phase-II programme, which was expected to be completed by September this year.
source:
http://www.business-standard.com/india/news/bhel-mulls-rs-500-cr-expansion-modernisation-prog/67238/on
Saturday, July 4, 2009
No formal proposal on BHEL divestment yet; will talk to Board
The government has said there is no concrete proposal yet to divest equity in blue-chip BHEL, with Heavy Industry Minister Vilasrao Deshmukh saying that company's Board would be consulted on it.
"The issue has to be decided by the Disinvestment Department in the Finance Ministry. Neither have they raised the issue with us, nor have we talked to them," Deshmukh told PTI when asked when his ministry would go ahead with the proposed disinvestment of up to 10 per cent in the company, in which the government now has a 67 per cent stake.
Asked if the government could consider issuing fresh equity instead of selling its existing holding, he said this is an issue on which the BHEL Board would also be taken into confidence.
"Once we have something from the Finance Ministry, then we will refer this to BHEL Board for its view. We will consider whatever they have to say," he said.
On if he would support the decision by BHEL Board on the mode of disinvestment, if any, Deshmukh said: "Definitely" and added that the views would be taken seriously.
Deshmukh said that he would stand by the commitment for disinvestment in BHEL by the previous government, as the same could not be executed due to political consideration.
Now as and when the disinvestment of BHEL proposal comes up, the Ministry would take it forward, he said, adding that disinvestment would be limited to offloading minority stake in strong and highly profitable PSUs.
more at:
http://www.business-standard.com/india/news/no-formal-proposalbhel-divestment-yet-will-talk-to-board/66347/on
"The issue has to be decided by the Disinvestment Department in the Finance Ministry. Neither have they raised the issue with us, nor have we talked to them," Deshmukh told PTI when asked when his ministry would go ahead with the proposed disinvestment of up to 10 per cent in the company, in which the government now has a 67 per cent stake.
Asked if the government could consider issuing fresh equity instead of selling its existing holding, he said this is an issue on which the BHEL Board would also be taken into confidence.
"Once we have something from the Finance Ministry, then we will refer this to BHEL Board for its view. We will consider whatever they have to say," he said.
On if he would support the decision by BHEL Board on the mode of disinvestment, if any, Deshmukh said: "Definitely" and added that the views would be taken seriously.
Deshmukh said that he would stand by the commitment for disinvestment in BHEL by the previous government, as the same could not be executed due to political consideration.
Now as and when the disinvestment of BHEL proposal comes up, the Ministry would take it forward, he said, adding that disinvestment would be limited to offloading minority stake in strong and highly profitable PSUs.
more at:
http://www.business-standard.com/india/news/no-formal-proposalbhel-divestment-yet-will-talk-to-board/66347/on
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