Dependence on power sector may hit BHEL’s margins

Bharat Heavy Electricals has for the first time fallen behind L&T in order backlog. Also, the company's prospects of bagging any incremental orders from the power sector look bleak as some of the private companies now face the threat of cancellation of coal linkages, having been named in the coal-allocation scam. At Rs 1,34,681 crore, Bhel's order backlog at the end of FY12 was not only its lowest in the past two years, but also lower than that of L&T, which has reported an order book of Rs 1,45,723 crore as of March 2012 end. Policy paralysis is to be blamed for Bhel's current situation. The order-book gap has widened further for the quarter ended June 2012, with L&T reporting an order book of Rs 1,53,095 crore, its highest till date, compared to Bhel's order book of Rs 1,32,900 crore, which is lower than that in March 2012. more at: http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/dependence-on-power-sector-may-hit-bhels-margins/articleshow/16332939.cms