Monday, October 29, 2012

BHEL Q2 earnings seen lower

Bharat Heavy Electricals (BHEL) will be announcing its second quarter results for financial year 2013 on October 29. We have collated views of brokers on how they see earnings this time around: ICICIdirect: Given tepid order inflows over the past few quarters, we expect the topline to decline 4% YoY. Margins are expected to decline by 80 bps YoY to 17.6% in Q2FY13E. PAT is expected to decline by 14% YoY on the back of muted execution and a marginal decline in margins. Prabhudas Lilladher: With no major orders announced in this quarter, we expect order booking to remain subdued. Though NTPC bulk tenders for 660MW and 800MW have been evaluated, LOAs have not been awarded for all the projects due to issues relating to few clearances. The total order for BHEL from NTPC bulk tenders will be Rs 135 billion. PAT is expected to decline by 1.4% yoy to Rs 13.92 billion. more at: http://www.myiris.com/newsCentre/storyShow.php?fileR=20121029082235199&dir=2012/10/29

Sunday, October 28, 2012

BHEL Q2: Analysts expect margins to remain under pressure

State-run power equipment manufacturer BHEL is set to announce its results for the quarter ended September 2012 today. Analysts on an average expect subdued revenues due to sluggish order inflows. Even margins are expected to remain under pressure due to increased pricing pressure and negative operating leverage, say analysts. Profit after tax is likely to go up by 2.4 percent year-on-year to Rs 1,446 crore in the three months ended September 2012 and net sales are seen going up by 11.2 percent to Rs 11,448 crore from Rs 10,299 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to go up by 12.7 percent YoY to Rs 1,930 crore in the second quarter. Analysts feel the operating profit margin will rise by 20 basis points to 16.9 percent versus 16.6 percent YoY. Declining commodity prices and rupee depreciation are expected to improve BHEL’s competitive positioning. more at: http://www.moneycontrol.com/news/result-poll/bhel-q2-analysts-expect-margins-to-remain-under-pressure_774421.html

Saturday, October 27, 2012

BHEL facing alarming situation in absence of new orders

Press Trust of India reported that BHEL is facing an alarming situation in the absence of new orders from the much delayed power projects, despite an existing order book of INR 0.13 million. The official said that the company conveyed its concerns recently to the Heavy Industry Ministry. The order flow has been hurt in recent times in the wake of multiple power sector problems. From 2011-12 onwards, issues of coal linkages, finances and delays in environment clearances are impacting the power sector. The official added that no new orders are coming up while existing projects that have been finalized are going slow or put on hold in the wake of financial constraints. In the wake of these problems, BHEL is finding it difficult to proceed with many of the projects. According to the official, BHEL informed the Ministry that “It is an alarming situation not only for BHEL because the company has expanded the capacity, taken number of people, but also for downstream industries of BHEL“. Source - Press Trust of India ref: http://www.steelguru.com/indian_news/BHEL_facing_alarming_situation_in_absence_of_new_orders/289382.html

Friday, October 26, 2012

Patel asks BHEL to diversify business activities

Heavy Industries Minister Praful Patel today asked Bharat Heavy Electricals to explore business opportunities in mass rapid transport systems and other areas. State-run Bharat Heavy Electricals Ltd (BHEL), a major player in the power equipment segment. During a meeting here today to review the company's performance, Patel said that BHEL has to gear up for the future to face competition from the domestic and overseas companies. According to a press release, BHEL has been asked to step up its activities in areas like renewables, transportation and defence, in a big way. Assuring complete support and backing of the Ministry, he said that BHEL would soon be conferred the 'Maharatna' status. The Heavy Industries & Public Enterprises Minister held a meeting with BHEL Chairman and Managing Director B P Rao and other senior company executives. Patel asked the company to explore the possibilities of entering into joint ventures with technology leaders. "He (Patel) has also decided to take up the issue of the defence production capabilities of BHEL with the Ministry of Defence," the release said. ref: http://business-standard.com/india/news/patel-asks-bhel-to-diversify-business-activities/193105/on

Wednesday, October 24, 2012

Cheap Chinese import may hit BHEL's Rs 2000 crore solar plan

Bharat Heavy ElectricalsBSE -1.03 % Ltd's Rs 2,000 crore investment plan for manufacturing solar equipment might become unviable if measures against dumping of Chinese items in the sector are not in place, according to sources. "The company is planning to put up an investment worth Rs 2,000 crore in this ( solar power) segment for manufacturing of silicon wafer, solar cell and solar module," a source in the know said. "But then, this investment will be viable only if there is a minimum offtake which is guaranteed by the Indian industry and countervailing measures against dumping from China," the source told reporters. The domestic solar equipment industry is grappling with tough market conditions, mainly on account of cheaper imports from China that are adversely impacting local players. more at: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/cheap-chinese-import-may-hit-bhels-rs-2000-crore-solar-plan/articleshow/16940349.cms

Sunday, October 21, 2012

Tension in BHEL colony after families evicted

Tension prevailed in the BHEL colony on Saturday after three of 14 families were forcibly evicted from their homes and their premises sealed, on the orders of senior BHEL officials. The move came after repeated orders for vacating the flats were ignored by the residents, alleged BHEL officials. Residents, however, decried the use of "forceful means". The eviction started at 1pm under the supervision of the Gautam Budh Nagar district officials amid a strong police presence. City magistrate Pushpraj Singh led the operation lasting nearly five hours. He was supported by ASP Chinnappa and women police officers. : : BHEL officials, meanwhile, confirmed that there are 14 houses under various categories in the BHEL township in Noida, which are illegally occupied by families of deceased BHEL employees for the past two to 15 years. "Despite several legal notices and a public notice dated June 22, 2012, published in newspaper, neither did the residents vacate the flats, nor did they reply to various notices given under the "Public Premises (Eviction of Unauthorized Occupants) Act, 1971," an official said. : more at: http://articles.timesofindia.indiatimes.com/2012-10-21/noida/34627202_1_bhel-officials-eviction-legal-notices

Thursday, October 18, 2012

BHEL - Q2 results on Oct 29, 2012

Bharat Heavy Electricals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 29, 2012, inter alia, to consider and take on record the Unaudited Financial Results of the Company for the quarter ended September 30, 2012 (Q2). ref: http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=606415

Monday, October 15, 2012

North Chennai Unit-II to produce electricity this month, says BHEL

There is good news for the citizens of Tamil Nadu. Close on the heels of the 600 MW at Mettur (finally) beginning to generate electricity, another under-construction power plant is about to do so. ‘Unit II’ of the North Chennai Thermal Power Station, also of 600 MW, will start pumping power into the grid “this month”, according to a senior official of the public sector power equipment major, Bharat Heavy Electricals Ltd (BHEL). BHEL is the equipment supplier and project contractor for the North Chennai project, ‘Unit I’ may have to wait a bit more. BHEL’s generator meant for the project fell into a river while being transported last year. Though BHEL has another generator ready for the North Chennai Unit I, its logistics contractor has not been able to move the equipment from the manufacturing unit at Hardwar, because of floods in the rivers enroute. However, there might be more positive news from the two units of Vallur near Chennai. The 2x500 MW Vallur Thermal Power Project is jointly owned by the Tamil Nadu Generation and Distribution Company and the public sector power generator NTPC. The first unit of the project was linked to the grid in March but is not yet operating at full capacity due to problems with coal handling facilities. As it usually happens, the project faced a number of teething issues which have since been solved. Another source in BHEL said Unit I of Vallur is being re-started today and would reach full load in a couple of weeks. The unit would generate around 350 MW in a week’s time and then take a week more to go up to 500 MW, the source said. The source said the North Chennai Unit II would also be stabilised at be able to produce 600 MW by March. Thus, by March, Tamil Nadu would have its share of 400 MW from Vallur, another 600 MW from North Chennai and yet another 600 MW from the new unit at Mettur, not to forget its share of power from the Kudankulam nuclear power plant. ref: http://www.thehindubusinessline.com/companies/north-chennai-unitii-to-produce-electricity-this-month-says-bhel/article3999058.ece?homepage=true&ref=wl_home

BHEL sets up facility for ISRO

BHEL has set up a facility at its Electronics Systems Division here in collaboration with the ISRO for assembling and testing Space Grade Solar Panels using high efficiency solar cells. Besides, BHEL has also supplied two sets of Li-ion batteries, each consisting of 40 Li-ion cells with a power storage capacity of 160 Ampere-Hours for GSAT-10, BHEL said in a statement. Both the solar panels and batteries were built and tested at the BHEL facility. They were subjected to rigorous tests such as vibration and thermal-vacuum tests at ISRO as part of ensuring space quality requirements to validate their mechanical, electrical and thermal performance. Earlier this year, space grade solar panels and Lithium-ion batteries assembled, tested and supplied by the electronics division of city-based BHEL to the Indian Space Research Organisation (ISRO) were successfully deployed recently on GSAT-10 Satellite. The satellite, launched from French Guiana on September 29, is the heaviest Indian satellite built by ISRO and caters to the country’s telecommunications and TV broadcasting requirements, a company release said. The four solar panels, of each with 5.36 square metre area, supplied by BHEL for GSAT-10 comprise multi-junction solar cells in series and parallel combinations, with a total power generating capacity of 4,000 watts. BHEL has so far supplied 55 solar panels totalling to 250 square metres of area and 40 batteries for various satellites of ISRO. ref: http://www.business-standard.com/india/news/bhel-setsfacility-for-isro/489655/

BHEL flags off consignment for Bhutan power project

The first consignment of 6X200 MW Punatsangchhu-I Hydroelectric Project, Bhutan was dispatched from BHEL, Bhopal on Monday. Executive director (ED) BHEL S S Gupta flagged off the consignment in a simple ceremony here. The dispatch documents were handed over to the transporter, Ms Parvat Road Carriers by Subhas Saxena G M, CDC in presence of Gupta. An official BHEL release said that this is the first major international contract finalized by CDC, BHEL, Bhopal. This contract assumes significance due to the fact that apart from Punatsagchhu-I, BHEL, Bhopal shall also be supplying equipments for Punatsangchhu-II (6X170 MW) and Mangdechhu (4X180 MW) contract projects in the near future. The contract shall involve transportation of large ODC consignments to difficult mountainous terrain of Bhutan. more at: http://timesofindia.indiatimes.com/city/bhopal/BHEL-flags-off-consignment-for-Bhutan-power-project/articleshow/16831327.cms

Sunday, October 14, 2012

BHEL working on diversification to beat power sector woes

Faced with persisting challenges in the power sector, state-run BHEL is working in a "big way" to diversify its business, especially in the areas of defence and nuclear power, according to an official. Bharat Heavy Electricals Ltd (BHEL) is a dominant player in the power sector. However, a slew of sectoral woes including acute fuel shortages and financial constraints are posing challenges for the public sector major. A government official in the know said that BHEL is now trying to "diversify in a big way" and is working on various new strategies. The company is focusing more on sectors such as defence, nuclear power, transportation and railways. Against the backdrop of issues in the power sector, the Heavy Industry Ministry expects BHEL to move in new directions as well as utilise new opportunities in transportation and defence sectors, the official said. Besides developing its capabilities in the nuclear power sector, BHEL is strengthening its position in supply of locomotives to the railways. Recently, BHEL along with Nuclear Power Corporation received an order for four 700 MW turbine generator sets. The state-run entity is also working on water desalination systems apart from renewable energy areas such as photovoltaic systems. During the 2011-12 fiscal, BHEL raked in a net profit of Rs 7,039 crore on a turnover of Rs 49,244 crore. During the same period, the entity's net worth stood at Rs 25,373 crore. The company's existing order book is at Rs 1.30 lakh crore. ref: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-working-on-diversification-to-beat-power-sector-woes/articleshow/16807711.cms

Thursday, October 11, 2012

Distribution of Shareholding as on 30.09.2012

You may check the share holding of BHEl at the following link : http://www.bhel.com/dynamic_files//press_files/pdf/Shareholding%20Pattern%20Sep%2012.pdf

Wednesday, October 10, 2012

Fire breaks out in BHEL's transformer testing block

A major fire broke out in the testing area of transformer block (block no 3) of the Bharat Heavy Electricals Limited (BHEL) around 10 am on Wednesday. The fire that broke out after a deafening blast led to a thick envelope of smoke that led to panic among the workers. The BHEL management has ordered an inquiry into the incident which will also ascertain the cause of the fire and the extent of damage. Thick black smoke continued to billow from the factory for an hour and a half as a dozen fire tenders tried to douse the flames. There were no casualties and the damage is being estimated said a BHEL spokesperson. ref: http://timesofindia.indiatimes.com/city/bhopal/Fire-breaks-out-in-BHELs-transformer-testing-block/articleshow/16760366.cms

Tuesday, October 9, 2012

BHEL pays all-time high equity dividend of 320% for fiscal 2011-12

With a final dividend payout of 184%, Bharat Heavy Electricals Limited (BHEL) has paid an equity dividend of 320% for fiscal 2011-12, as against 311.5% paid in the year before. At Rs.1,567 Crore, this is the highest-ever dividend in percentage as well as value terms paid by the company so far. With this, the company has maintained its track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break. A cheque of Rs.609.98 Crore towards the final dividend for the year 2011-12 on the equity (67.72%) held by the Government of India, was presented here today to Praful Patel, Union Minister for Heavy Industries and Public Enterprises by B.P. Rao, Chairman and Managing Director, BHEL, in the presence of S. Sundareshan, Secretary, Department of Heavy Industries. Directors on the board of BHELBSE -1.52 % as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion. more at: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-pays-all-time-high-equity-dividend-of-320-for-fiscal-2011-12/articleshow/16738617.cms

Thursday, October 4, 2012

Tamil Nadu Electricity Board cracks whip on BHEL

The Tamil Nadu Electricity Board (TNEB) in an attempt to extend the duration of power availability to the common man has imposed a 40% power cut on Trichy's Bharat Heavy Electricals Limited (BHEL) since September 28. The TNEB maintained that the decision was inevitable as it could not leave the common man without power for longer hours. However, BHEL general manager (maintenance and services) J Kannan told TOI on Thursday that the plant suffered losses to the tune of crores of rupees since the latest power cut and that he could not operate the high energy consuming main machine. "In addition to the financial losses, I have to make changes in the shift system. As a result I would not be able to meet the delivery deadlines," he said from the Trichy airport as he was headed for Chennai to take up the matter with the higher officials. more at: http://timesofindia.indiatimes.com/city/madurai/Tamil-Nadu-Electricity-Board-cracks-whip-on-BHEL/articleshow/16678414.cms

Wednesday, October 3, 2012

BHEL suppliers in Tiruchi in trouble due to lack of power, finance

The 600-odd small and medium fabricators that supply to BHEL face closure of business due to multiple factors—mainly lack of power, finance and “intermittent periods of dried up orders.” “The power situation in the state is crippling the units’ productivity. Some units are on the verge of shutdown due to acute power shortages,” says BHEL Small and Medium Industries Association (BHELSIA). Power from diesel gensets, it says, is way too expensive. Unless the situation is rectified immediately on war footing, the industrial infrastructure patiently built over five decades in Tiruchi would wither away, BHELSIA says in a press release. Units are even agreeable for a two day power holiday per week, provided uninterrupted power is supplied for the balance five days, it says. more at: http://www.thehindubusinessline.com/companies/article3960988.ece

Monday, October 1, 2012

Bharat Heavy Electricals Ltd (Bhel), state-owned capital goods company, is looking at engineering, procurement and construction (EPC) contracts and urban transport projects such as Metro rail to offset dwindling revenues from its mainstay boiler, turbine and generator (BTG) business. The company aims to double turnover to Rs1 lakh crore by fiscal 2017 from the Rs48,000 crore clocked in the last fiscal. “Bhel is diversifying into related and unrelated fields for increasing its turnover. Related activities such as strengthening its EPC arm will play a pivotal role in achieving the topline growth,” Ambuj Sharma, joint secretary, heavy industries and public enterprises ministry, told DNA Money. ref: http://www.dnaindia.com/money/report_hit-by-btg-bhel-seeks-epc-metro-boosters_1747737