BHEL bags Rs 1,143 crore contract from NTPC for power generating unit

BHEL today said it has bagged a Rs 1,143 crore contract from country's largest power generation utility NTPC for setting up a 500-MW power generating unit at its Vindhyachal Super Thermal Power Station in Madhya Pradesh. "NTPC has placed a major order on the company for supply and installation of the main plant package (boilers, turbines and generators) for a power project in Madhya Pradesh involving one generating unit of 500 MW," BHEL said in a statement. "Valued at Rs 1,143 crore, the contract envisages setting up a 1x500 MW thermal power generating unit at NTPC's Vindhyachal Super Thermal Power Station (STPS), in Madhya Pradesh," the statement said. On commissioning of the unit, 12 million units of electricity will be added to the grid, every day, BHEL said. more at: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-bags-rs-1143-crore-contract-from-ntpc-for-power-generating-unit/articleshow/13685362.cms

Sparks fly over stalled BHEL projects in Tamil Nadu

Mining and power generating company Neyveli Lignite Corporation (NLC) recently declared it had been unable to add around 1,500 mega watt (Mw) of power to the grid in Tamil Nadu which would have been crucial to easing the crisis in the electricity-starved state. The culprit? NLC points its finger at Bharat Heavy Electricals Ltd (BHEL), which is both a boiler supplier and an engineering, procurement and construction contractor. NLC Chairman and Managing Director A R Ansari says BHEL’s delay in delivering equipment for a power plant is as much as 45 to 50 months. Tamil Nadu Electricity Board (TNEB) Chairman Rajeev Ranjan cites this as one of the reasons why his firm has bled at least Rs 5,000 crore in power revenues. NLC is one of the major suppliers of electricity to Tamil Nadu, which procures 1,170 Mw of the company’s total output of 2,490 Mw, generated from three of its thermal power stations in the state. NLC is not alone. National Thermal Power Corporation (NTPC) and many state governments, such as Rajasthan, have also come down heavily on BHEL over project delays. A recent report quoted the Central Electricity Authority as saying: “BHEL has failed to meet the deadline in nine of the 17 thermal projects that were to be commissioned last financial year”. The tragic irony for NLC is that it has to support its PSU cousin BHEL, and is forced to adhere to the lowest-bidder rule for equipment contracts instead of being allowed to factor in delivery schedules and other parameters in its selection process more at: http://www.business-standard.com/taketwo/news/sparks-fly-over-stalled-bhel-projects-in-tamil-nadu/475853/

BHEL commissions fifth 250 MW unit of Parichha power project

BHEL today commissioned the fifth 250 MW unit of Parichha thermal power project in Uttar Pradesh, which would feed 6 million units of power to the National Grid. "BHEL has commissioned a 250 MW unit at Parichha Thermal Power Station (1,140 MW), in Uttar Pradesh. With this, 6 million units of electricity will be added to the grid of the power deficit state, every day," a company statement said. This order was placed on BHEL by Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). BHEL's job in the contract involves manufacture, supply, erection, testing and commissioning of the main plant package along with associated auxiliaries and civil works for the main plant package for this power project, it said. The equipment for the project has been supplied by BHEL's Haridwar, Trichy, Ranipet, Hyderabad, Bangalore, Bhopal and Jhansi plants, while BHEL's Power Sector, Northern Region, is undertaking erection and commissioning of the equipment. more at: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-commissions-fifth-250-mw-unit-of-parichha-power-project/articleshow/13637022.cms

BHEL's FY13 order inflow to be 15,000 MW, says CMD

After taking into account a tight macro-economic environment, Bharat Heavy Electrical Ltd (BHEL) has given conservative order inflow guidance at 14,000-15,000 megawatt (MW) for financial year 2012-13. The state run company had missed its FY12 order guidance by 64% to Rs 22,096, registering the biggest drop in ten years. The company's, chairman and managing director B Prasada Rao, however says that he expects the NTPC's 800 MW order within a month. Rao is confident of being able to face competition from China and has been able to offer competitive prices competition from Chinese manufacturers. However, going ahead, key concerns like slowing order inflow, heightened competition, and margin erosion due to inflationary pressure remain for the company. Meanwhile, earlier this week, the company has reported 21%, year-on-year rise in the March quarter net profit to Rs 3,380 crore Net sales increased 7.5% to Rs 19,259 crore, YoY mainly due to increased capacities. EBITDA margin improved at 25.2% for the quarter as against 23.4% in a year ago period. Other income too went up to Rs 399 crore from Rs 368 crore YoY. more at: http://www.moneycontrol.com/news/results-boardroom/bhel39s-fy13-order-inflow-to-be-15000-mw-says-cmd_709000.html

BHEL commissions first 500-MW unit at Rihand plant stage III

Bharat Heavy Electricals Ltd (BHEL) has commissioned the first 500-MW unit at NTPC’s Rihand Super Thermal Power Station (STPS) stage III in Uttar Pradesh. With this, 12 million units of electricity will be added to the grid of the power-deficit state everyday, the company said in a statement. BHEL has earlier commissioned all the four 500-MW units operating at the power project. With the commissioning of the fifth unit, the cumulative generating capacity of Rihand STPS has gone up to 2,500 MW. BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of two steam generator and turbine generator sets of 500 MW each. The steam generator and turbine generator was manufactured at the company’s Tiruchi and Haridwar plants, respectively, BHEL said. more at: http://www.thehindubusinessline.com/companies/article3458854.ece?homepage=true&ref=wl_home

Mutual funds managers dump BHEL on poor earnings, weak order book

Taking cognizance of the poor earnings visibility and weakening order book, the mutual fund managers have neatly dumped off their investment in the country's heavy engineering major - Bharat Heavy Electricals Limited (Bhel). As per Bhel's shareholding pattern as on Mar 31 '2012, Mutual Funds held just about 1.44% share in the company. This is a steep decline from 7.03% shares held by the Mutual Funds until a year ago in Mar '11. In fact, at 1.44%, MF shareholding in this company is lowest since at-least March 2001. While the MF industry has been gradually off-loading its investment in Bhel, especially over the past one-year from 7.03% in Mar '11 to 5.89% in Dec '11, it is however the fourth quarter of FY'12 that saw MFs literally dump the stock of this company from their portfolios. more at: http://economictimes.indiatimes.com/markets/analysis/mutual-funds-managers-dump-bhel-on-poor-earnings-weak-order-book/articleshow/13448854.cms

Bhel valuation hits a 10-year low

Bharat Heavy Electricals Ltd’s (Bhel’s) trailing 12-month price-to-earnings (P-E) multiple, based on its stand-alone fiscal 2012 earnings, has plunged to a 10-year low at 8.9 times (price as of 31 March). This follows concerns on the outlook for fresh order inflows and to some extent on project execution too. The stock traded at similar valuations way back in 2002, when the global economy seemed shaky after the dot-com meltdown. Thereafter, the P-E multiple had soared four times to around 36 times in March 2008, on optimism that the state-owned enterprise would be among the biggest beneficiaries of the government’s focus on power and infrastructure. And those expectations were met. Annual order inflows surged 41% in fiscal 2008 from 2007, a year which had already seen an 88% increase. more at: http://www.livemint.com/2012/05/23221104/Bhel-valuation-hits-a-10year.html