BHEL, battling falling margins & orders, hopes worst is over

Bharat Heavy Electricals Ltd (BHEL) is feeling the pinch of being the largest power equipment maker in the country. With a crippling slowdown facing the sector, its order book has dried by half and its investors have given it a thumbs down, with share prices at a seven-year low. Slowdown in demand, a lower order book and implementation issues due to payment delays by customers, deteriorating working capital, depleting cash in the books and falling operating profit margins are dragging the company down - signifying the ills now gripping the capital goods sector. "A host of infrastructural bottlenecks related to power shortages, mining ban in many states and delays in commissioning of large projects are key headwinds for recovery in industrial production. We are currently operating in a difficult business environment," said B Prasada Rao, chairman and managing director, in a recent investor conference call. Power, which contributes almost 80 per cent of BHEL's revenue, has been the biggest worry. The company used to win about Rs 60,000 crore of orders in a year. This has come down to Rs 25,000-30,000 crore. Once an order is booked, it takes two to three years for BHEL to make the equipment, making it important to keep the project pipeline moving. To combat this, the company is looking for other opportunities, particularly from the state and central utilities, which continue to invest in new projects as compared to private sector power companies. more at: http://www.business-standard.com/article/companies/bhel-battling-falling-margins-orders-hopes-worst-is-over-113062800027_1.html

Prakash Chand tipped to be Bhel CMD, to take reins from Rao

Prakash Chand is tipped to takeover as chairman and managing director of electrical equipment major and state-run Bharat Heavy Electricals (Bhel). The public enterprises selection board (PESB) has cleared Chand’s candidature earlier last week. He will succeed the current CMD, B Prasad Rao who is scheduled retire by this year-end. A graduate in engineering Prakash Chand is currently managing the manufacturing unit of BHEL at Hardwar as an executive director. PESB named Prakash Chand as the preferred candidate after having interviewed at least 12 top officials from different PSUs and the government. At least, four officials from Bhel were in the reckoning for the coveted post. The other three EDs who were in the race included N Ravi Chander, Anuj Bhatnagar and Akhil Joshi. Shishir Priyadarshi was the lone IAS officer in fray for BHEL chairmanship. Others who were in reckoning included Security Printing & Minting Corp of India (Spmcil) chairman M S Rana, HECL director in-charge of production Kushal Saha, Concor director (project & services) Harpreet Singh, CIL director, R Mohan Das, NHPC, director (projects), J K Sharma, PGCL director (projects) I S Jha, SJVNL director (civil) R N Misra and PDIL CMD M R Kanth. ref: http://www.mydigitalfc.com/news/prakash-chand-tipped-be-bhel-cmd-take-reins-rao-759

BHEL gives Rs 2 crore, employees one-day salary for flood victims

Bharat Heavy Electricals has contributed Rs 2 crore besides giving one-day salary of its employees to help victims in the flood-hit areas of Uttarakhand. The power equipment major said it has also provided supplies including food, milk, water and medicines to the affected areas, from its plants located at Haridwar. more at: http://economictimes.indiatimes.com/news/politics-and-nation/bhel-gives-rs-2-crore-employees-one-day-salary-for-flood-victims/articleshow/20743438.cms

BHEL wins Rs 450 crore R&M contract from Mahagenco

BHEL today bagged a renovation and modernisation contract worth Rs 450 crore from Maharashtra State Power Generation Corp ( Mahagenco). "BHEL has won an order for renovation and modernisation of a 210 MW thermal unit in Maharashtra," the company said in a statement. The World Bank-funded Rs 450 crore contract has been placed on BHEL by the Maharashtra State Power Generation Corp Ltd, the statement said. The order envisages design, supply and installation (for renovation and modernisation) of the 210 MW Boiler, Turbine and Generator package at Koradi Thermal Power Station. BHEL's scope of work in the current contract involves design, engineering, manufacture, supply and erection and commissioning of critical parts of the Boiler, Turbine and Generator, along with their Controls and Instrumentation, the statement said. Major equipment for the above contract will be manufactured and supplied by BHEL's plants at Trichy, Ranipet, Haridwar, Hyderabad and Bangalore, it added. BHEL has established the capability to deliver power plant equipment of 20,000 MW per annum. Shares of BHEL were trading at Rs 182.40, up 0.03 per cent on the BSE in the afternoon. ref: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-wins-rs-450-crore-rm-contract-from-mahagenco/articleshow/20645102.cms

BHEL looking to build thermal power units in Buryatia

Bharat Heavy Electricals Ltd (BHEL), an Indian integrated power plant equipment manufacturer, is looking to build two thermal power plant units in the Russian internal republic of Buryatia, the Regnum news agency said. Executives from BHEL recently met representatives of the Buryatia government to negotiate over the Indian company’s participation in building the reactors of the Ulan-Ude TETs-2 thermal power plant. The first phase of the project involves the construction of two power units with a capacity of 240 MW each. The Buryatia government expressed interest in BHEL’s proposal to raise finances for the project using mechanisms under the trade and economic cooperation agreement between the governments of Russia and India. Buryatia considers the project strategically important to meet the republic’s energy needs. The construction and commissioning of the Ulan-Ude TETs-2 will create the conditions for quality heat supply to the capital. The project would also help secure power supplies to industrial consumers, including companies implementing large-scale projects in the field of extraction and processing of natural resources. The republic will also depend on the project to supply electricity to consumers in its northern regions: Khorinsky, Yeravninsky and Bauntovsky Evenkiysky. ref: http://indrus.in/economics/2013/06/13/bhel_looking_to_build_thermal_power_units_in_buryatia_26095.html

BHEL to see one-time Rs 870 cr expense with BHPV amalgamation

Bharat Heavy Electricals is estimated to see a one-time expenditure of about Rs 870 crore related to the proposed amalgamation of Bharat Heavy Plate & Vessels with itself. Besides, there would be annual recurring expenses to the tune of Rs 75 crore with regard to employee salaries. Bharat Heavy Plate & Vessels (BHPV) became a 100 per cent subsidiary of Bharat Heavy Electricals in 2008. BHPV, which is into engineering and heavy fabrication, was declared a sick entity by the Board for Industrial and Financial Reconstruction (BIFR) in October 2005. The proposed amalgamation of Visakhapatnam-based Bharat Heavy Plate & Vessels Ltd with the company is projected to result in a one-time expenditure of Rs 869.92 crore, according to a notice sent by BHELBSE -1.24 % to its shareholders seeking approval for the scheme. The figure includes an amount of Rs 224 crore towards liabilities arising out of "legal cases and excise duty/ service tax" and outstanding loans to BHEL worth over Rs 234 crore. Besides, BHEL would see a recurring annual expenditure of Rs 75 crore on account of "employee payments for 2007 wage revision". ref: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-to-see-one-time-rs-870-cr-expense-with-bhpv-amalgamation/articleshow/20557435.cms

Rift in Public Enterprises Selection Board over Bhel chief's interview list

Differences have cropped up in Public Enterprises Selection Board (PESB) over the list of 15 candidates who are to be interviewed on June 20 for the post of Bhel chairman, with one of the three board members giving dissent note against inclusion of an IAS officer. Government sources said former Bharat Electronics Ltd chairman Ashwani Kumar Datt, who represents public sector undertakings (PSUs) in the PESB, has opposed the inclusion of Shishir Priyadarshi's name in the interview list to select B P Rao's successor, who retires next January. Priyadarshi is a 1980-batch UP cadre IAS officer and the only bureaucrat to have applied for the top job at India's flagship power equipment and locomotives maker. The sources said Priyadarshi had last year applied for the top job at Coal India Ltd but was not called for interview. The sources said his inclusion in the interview list has been opposed on the ground that his name figured in a list of nine IAS officers, given in response to an RTI query in July 2012, against whom the Department of Personnel and Training was considering enforcing "deemed resignation" for allegedly "unauthorized absence". more at: http://timesofindia.indiatimes.com/business/india-business/Rift-in-Public-Enterprises-Selection-Board-over-Bhel-chiefs-interview-list/articleshow/20487370.cms

15 line up for BHEL CMD post

More than a dozen candidates, including senior IAS officer Shishir Priyadarshi are in race for the top job at India's biggest power-equipment maker Bharat Heavy Electricals LtdBSE -1.25 % (BHEL). Government head-hunters, the Public Enterprise Selection Board (PESB) has called 15 candidates for interviews on June 20 to select Chairman and Managing Director of BHEL, sources said. Priyadarshi, a 1980 batch UP cadre IAS officer, is the only bureaucrat to have applied for the top job at BHEL. Others in fray include BHELBSE -1.25 % Executive Directors N Ravi Chander, Anuj Bhatnagar, Prakash Chand and Akshil Joshi. Security Printing & Minting Corp of India Ltd (SPMCIL) Chairman M S Rana, Heavy Engineering Corp Ltd (HECL) Director (Production) Kushal Saha, Container Corp of India (CONCOR) Director (Project & Services) Harpreet Singh, Coal India LtdBSE -1.08 % Director R Mohan Das, NHPC Director (Projects) J K Sharma, PGCL Director (Project) I S Jha, SJVNL Director (Civil) R N Misra and PDIL CMD M R Kanth are among other in race. PESB is to select a replacement for B Prasada Rao who retires in January next year on attaining superannuation age. Sources said Priyadarshi had last year applied for top job at Coal India Ltd (CIL) but was not called for interview. He has, however, made it to the grades in case of BHEL. He had served at WTO in Geneva for eight years, first during 1997-2000, and then between 2002 and 2007. In 2001-02, he was with UNDP. From September 2008, the official records say "posting awaited" against his present posting. Interestingly, last year his name figured in a list of 9 IAS officers against whom the Department of Personnel and Training (DoPT) was considering enforcing "deemed resignation" for allegedly "unauthorised absence". After returning from foreign deputation on September 1, 2008, he had applied for leave which was not sanctioned. ref: http://economictimes.indiatimes.com/news/news-by-industry/jobs/15-line-up-for-bhel-cmd-post/articleshow/20478274.cms

Dues to BHEL cross Rs 40k cr as cash crunch hits India Inc

Across India Inc, a cash crunch is hurting companies. Receivables at India’s biggest Indian electrical equipment maker BHEL have piled up to as much as Rs 40,000 crore at the end of 2012-13, up from R16,000 crore five years ago. The delayed payments at the company, which reported revenues of R50,015 crore crore last year, have resulted in negative cash flows. Indeed, it’s been a difficult year for India’s $25-billion electrical equipment manufacturing industry. Not only has industry-wide production shrunk 8% in fiscal 2013, the first decline in a decade, cash flows across the sector have been squeezed as cash-strapped power producers scale back orders and defer payments. ref: http://www.financialexpress.com/news/dues-to-bhel-cross-rs-40k-cr-as-cash-crunch-hits-india-inc/1125634

BHEL filed one patent application every day last fiscal

With as many as 385 filings, state-run Bharat Heavy Electricals Ltd on an average filed one patent application every day in the last fiscal. The count of applications for patents/copyrights in previous financial year saw an increase of 10 per cent compared to 2011-12 period. "During the year (2012-13), a record 385 patents and copyrights were filed by the company, translating into filing of over one patent/copyright every working day," BHEL said in a statement today. BHEL, which is primarily into manufacturing power equipment, invested about Rs 1,252 crore on R&D initiatives in 2012-13 period. "Commercialisation of products and systems developed by way of in-house Research and Development contributed around 20 per cent to the company's total turnover of Rs 50,156 crore in 2012-13," the statement said. According to the company, 145 technology plans with over 1,500 R&D projects have been identified for establishing self ultra super critical plants, renewable energy and among others. ref: http://zeenews.india.com/business/news/companies/bhel-filed-one-patent-application-every-day-last-fiscal_77583.html