Capital goods major Bharat Heavy Electricals (Bhel) is witnessing a moderation in its sales growth over the past few quarters. Its performance in the June 10 quarter was another evidence that the company may have to focus on its shrinking growth in its topline. This, however, may not be challenging, considering its recent capacity expansion and burgeoning order book.
At 16%, its first quarter sales growth was the lowest in the past 10 quarters. Sales growth now averages 22% in the past four quarters against 33% on a year-on-year basis. On the other hand, lower proportion of raw material costs in sales aided a faster growth of 42% in operating profit. With raw material cost coming off peak globally and significant import dependency, the company may escape the input price hit, which many capital goods companies have seen in the past two quarters. However, there has been a significant increase in other cost items and provisions such as employee cost, depreciation and tax provisions, which rose by 20-30%.
more at:
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/BHEL-Topline-faces-heat-but-rising-order-flow-can-swing-it/articleshow/6221225.cms
Tuesday, July 27, 2010
Sunday, July 25, 2010
BHEL expect increase in order book - Mr Rao, CMD, BHEL
Power equipment major Bharat Heavy Electricals is confident of maintaining its lead in the boiler turbine generator space.
Some brokerage reports had suggested that Larsen & Toubro has been disqualified from the 11x660 MW BTG bulk tender.
Commenting on the impending BTG bulk tender from NTPC for which even L&T is a contender, Mr BP Rao chairman of BHEL said that NTPC has called for its re tendering.
Mr Rao said that margins and market share are important and he expect public & private sector order book to grow. However, raw materials for the capital goods space remain a constraint but there is no constraint as far as BHEL's manufacturing capacity is concerned. In fact, for FY11, the company expects to manufacture 16000 MW versus 13000 MW in FY10.
Q - Earlier we spoke to L&T and the sense we get is that there is lot of competition which is now coming in this boiler turbine generator segment. We have players like BGR Energy also in the picture, some of these companies are bidding for same orders which you are bidding, in which you enjoy margins of about 18%. So going forward what would be the strategy, would you compromise on margins to maintain market share or would you let some of the market share go?
A - As I have been saying earlier competition is not just only on margin, there is a performance parameter which will get loaded otherwise performance is not good. So performance has to be one of the main factors and margins definitely will play a role and depending on the competitive situation we will play accordingly. There is no question of loosing our market share on this, the leadership of BHEL has to be maintained. So we will have a mix of strategies to maintain the market margins as well as retain the market share.
ref:
http://www.steelguru.com/indian_news/BHEL_expect_increase_in_order_book_-_Mr_Rao/156634.html
Some brokerage reports had suggested that Larsen & Toubro has been disqualified from the 11x660 MW BTG bulk tender.
Commenting on the impending BTG bulk tender from NTPC for which even L&T is a contender, Mr BP Rao chairman of BHEL said that NTPC has called for its re tendering.
Mr Rao said that margins and market share are important and he expect public & private sector order book to grow. However, raw materials for the capital goods space remain a constraint but there is no constraint as far as BHEL's manufacturing capacity is concerned. In fact, for FY11, the company expects to manufacture 16000 MW versus 13000 MW in FY10.
Q - Earlier we spoke to L&T and the sense we get is that there is lot of competition which is now coming in this boiler turbine generator segment. We have players like BGR Energy also in the picture, some of these companies are bidding for same orders which you are bidding, in which you enjoy margins of about 18%. So going forward what would be the strategy, would you compromise on margins to maintain market share or would you let some of the market share go?
A - As I have been saying earlier competition is not just only on margin, there is a performance parameter which will get loaded otherwise performance is not good. So performance has to be one of the main factors and margins definitely will play a role and depending on the competitive situation we will play accordingly. There is no question of loosing our market share on this, the leadership of BHEL has to be maintained. So we will have a mix of strategies to maintain the market margins as well as retain the market share.
ref:
http://www.steelguru.com/indian_news/BHEL_expect_increase_in_order_book_-_Mr_Rao/156634.html
Friday, July 23, 2010
BHEL Q1 net up 42% to Rs 667.6 cr, beats estimates
State-run Bharat Heavy Electricals (BHEL) has announced its results for the quarter ended June 2010. It has reported net profit of Rs 667.6 crore as against Rs 470.6 crore, a growth of 41.86% on year-on-year basis (YoY).
Net sales rose 15.79% to Rs 6,479 crore from Rs 5,595.7 crore (YoY).
Numbers were better-than-expectations; CNBC-TV18 expected net profit at Rs 589 crore and net sales at Rs 6937.3 crore.
Outstanding order book backlog of the company stood at Rs 1,48,000 crore as on June 30.
Earning before interest, depreciation, tax and amortisation (EBIDTA) margin improved to 13% versus 9.3%.
ref:
http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=471908
Net sales rose 15.79% to Rs 6,479 crore from Rs 5,595.7 crore (YoY).
Numbers were better-than-expectations; CNBC-TV18 expected net profit at Rs 589 crore and net sales at Rs 6937.3 crore.
Outstanding order book backlog of the company stood at Rs 1,48,000 crore as on June 30.
Earning before interest, depreciation, tax and amortisation (EBIDTA) margin improved to 13% versus 9.3%.
ref:
http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=471908
Wednesday, July 21, 2010
BHEL in 10-year licencing pact for oil, gas compressors
Bharat Heavy Electricals (BHEL) touched an intraday high of Rs 2,439 and an intraday low of Rs 2,417.05. At 10:35 hrs the share was quoting at Rs 2,425.60, up Rs 10.90, or 0.45%.
BHEL and General Electric are in 10-year licencing pact for oil, gas compressors, quoting, NewsWire18, reports CNBC-TV18.
It was trading with volumes of 10,588 shares. Yesterday the share closed down 0.01% or Rs 0.30 at Rs 2,414.70.
ref:
http://www.moneycontrol.com/news/buzzing-stocks/bhel10-year-licencing-pact-for-oil-gas-compressors_471238.html
BHEL and General Electric are in 10-year licencing pact for oil, gas compressors, quoting, NewsWire18, reports CNBC-TV18.
It was trading with volumes of 10,588 shares. Yesterday the share closed down 0.01% or Rs 0.30 at Rs 2,414.70.
ref:
http://www.moneycontrol.com/news/buzzing-stocks/bhel10-year-licencing-pact-for-oil-gas-compressors_471238.html
Monday, July 19, 2010
Difficult for BHEL to break 2400: Sandeep Wagle, & MD, APTART Technical Advisory Services
Sandeep Wagle : BHEL is a little sideways. I do not see BHEL crossing 2460 to 2470 in the immediate future.
Downside too, I do not see it breaking 2400. So I would call it very much range bound. Unless one has a long term view which is beyond 3 to 6 months, no point in trading at this point of time.
ref:
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6185986.cms
Downside too, I do not see it breaking 2400. So I would call it very much range bound. Unless one has a long term view which is beyond 3 to 6 months, no point in trading at this point of time.
ref:
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6185986.cms
BHEL gets Rs26.65 billion order in Chattisgarh
Be the first to comment
Bharat Heavy Electricals Limited (BHEL) has secured a contract to set up a 1,200 MW thermal power plant (2x600 MW) in Chhattisgarh.
The Rs26.65 billion order has been placed by Dainik Bhaskar Power Limited (DBPL), an Independent Power Producer (IPP), for supplying and installing the main plant package for their upcoming coal-based thermal power project, located at Baradarha in Janjgir district of Chhattisgarh.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of Boilers, Steam Turbines and Turbo-Generators along with state-of-the-art Controls and Instrumentation (C&I) and other associated auxiliaries.
BHEL has managed to secure a large number orders from Private Power Utilities in fiscal 2009-10. Out of the total orders of 16,489 MW for Power Plant Equipment received by BHEL during the year, the orders received from IPPs alone accounted for 14,689 MW. This constituted nearly 90% of the total orders booked by BHEL’s Power Sector.
The company has fully established state-of-the-art technology for the manufacture of thermal sets up to 1,000 MW rating. It has introduced new rating thermal sets of 270 MW, 525 MW, and 600 MW, in addition to 250 MW and 500 MW thermal sets. With this order, BHEL has so far secured orders for 17 numbers of 600 MW sets.
ref
http://www.constructionweekonline.in/article-6609-bhel_bags_rs2665_billion_thermal_plant_contract/
Bharat Heavy Electricals Limited (BHEL) has secured a contract to set up a 1,200 MW thermal power plant (2x600 MW) in Chhattisgarh.
The Rs26.65 billion order has been placed by Dainik Bhaskar Power Limited (DBPL), an Independent Power Producer (IPP), for supplying and installing the main plant package for their upcoming coal-based thermal power project, located at Baradarha in Janjgir district of Chhattisgarh.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of Boilers, Steam Turbines and Turbo-Generators along with state-of-the-art Controls and Instrumentation (C&I) and other associated auxiliaries.
BHEL has managed to secure a large number orders from Private Power Utilities in fiscal 2009-10. Out of the total orders of 16,489 MW for Power Plant Equipment received by BHEL during the year, the orders received from IPPs alone accounted for 14,689 MW. This constituted nearly 90% of the total orders booked by BHEL’s Power Sector.
The company has fully established state-of-the-art technology for the manufacture of thermal sets up to 1,000 MW rating. It has introduced new rating thermal sets of 270 MW, 525 MW, and 600 MW, in addition to 250 MW and 500 MW thermal sets. With this order, BHEL has so far secured orders for 17 numbers of 600 MW sets.
ref
http://www.constructionweekonline.in/article-6609-bhel_bags_rs2665_billion_thermal_plant_contract/
Friday, July 16, 2010
&T Power ends BHEL monopoly
&T Power, which started production yesterday at its Hazira (Gujarat) facility, has become the second domestic boiler, turbine, and generator (BTG) equipment maker after government-owned Bharat Heavy Electricals Ltd (BHEL). The company has already bagged 6,500 Mw of orders.
L&T Power will deliver its first turbine, for Andhra Pradesh Power Generation Corporation’s (APGenco’s) 2x800 Mw Krishnapatanam project by September, Ravi Uppal, chief executive and managing director of L&T Power told Business Standard.
more at:
http://www.business-standard.com/india/news/lt-power-ends-bhel-monopoly/401685/
L&T Power will deliver its first turbine, for Andhra Pradesh Power Generation Corporation’s (APGenco’s) 2x800 Mw Krishnapatanam project by September, Ravi Uppal, chief executive and managing director of L&T Power told Business Standard.
more at:
http://www.business-standard.com/india/news/lt-power-ends-bhel-monopoly/401685/
Subscribe to:
Posts (Atom)
