BHEL bets on new business models, overseas opportunities

Faced with reduced order book and stiff competition, power equipment maker BHEL is exploring new business models apart from scouting for overseas opportunities in Russia, Kazakhstan and other countries. State-owned BHEL, which saw its net profit nearly half to Rs 3,461 crore in the last fiscal, is also keen to tap opportunities in the nuclear power segment and possible entry into core-nuclear area. In its 2013-14 annual report, Bharat Heavy Electricals Ltd (BHEL) said the company has taken various strategic initiatives to sustain and grow in present adverse market conditions. BHEL is exploring new business models with partnerships for power plant developers for upcoming UMPPs and debt financing for new projects in partnership with financial institutions are also underway. "Further, to harness emerging opportunities in nuclear power, the company is working towards increasing its offering in nuclear plant with focus on indigenisation and entry into core-nuclear area," the report said. more at: http://www.business-standard.com/article/pti-stories/bhel-bets-on-new-business-models-overseas-opportunities-114083100180_1.html

China firm gets time to beef up case against BHEL

In a small consolation for a Chinese firm-led consortium bidding for the 9,207 crore Ennore power project, the Madras high court granted it another week to marshal documents to seek disqualification of BHEL from participating in the tender process. The issue relates to a petition filed by CSEPDI-TRISHE, led by Central Southern China Electric Power Design Institute (CSEPDI), which has bid for the supercritical thermal power project. The other bidder is BHEL. Taking exception to the processing of BHEL's bid, the consortium said the public sector company had inordinately delayed several power projects involving 7,300MW in the state and hence should be disqualified from bidding for the project. Last month, a single judge asked Tangedco, the generation and distribution arm of the state power utility, to give a personal hearing to the consortium and consider its representations before finalising tenders. Challenging it, the government filed an appeal. more at: http://timesofindia.indiatimes.com/business/india-business/China-firm-gets-time-to-beef-up-case-against-BHEL/articleshow/40541174.cms

To boost generation, NTPC seeks tie ups with Coal India, Bhel

NTPC is keen to join hands with Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (Bhel) to augment its generation capacity and capability, which have been hit by a coal shortage. Minutes of a July meeting of an advisory group on integrated power development, headed by Suresh Prabhu, said, "NTPC's performance was affected in recent years, and continues to be so, by the general situation of the coal shortage in the country. While this is true, it is also a fact that NTPC could develop the coal blocks allotted to it from 2004." In 2013-14, the thermal power producer's dependency on imported coal increased to 10.39 million tonnes (mt) from 9.09 mt in 2012-13. For this financial year, the figure is expected to rise to 17 mt. The company's fuel costs rose to Rs 12,765 crore in the June 2014 quarter, 35 per cent more than in the corresponding period last year, while revenue from operations rose 16 per cent during the same period. In a note to investors, NTPC said the robust business models of private entities in the sector offered substantial competition. more at: http://www.business-standard.com/article/companies/to-boost-generation-ntpc-seeks-tie-ups-with-coal-india-bhel-114081901059_1.html

BHEL develops new boiler for power generation

Bharat Heavy Electricals Ltd (BHEL) has developed a new kind of boiler . This is one of the key equipment in power generation. Known as ‘Fuel Flexible Supercritical Boilers', this new equipment can help in producing electricity with 100 per cent domestic coal or 100 per cent imported coal. Currently, the companies are required to mix both categories of coal in a fixed ratio and also have to consider few characteristics before blending. Now, with the help of this new boiler, there would not be any such requirements. According to a company statement, the new equipment is meant for coal-based power plant also known as thermal power plant. Latest data for power generation states that 3,55,499 billion units of power were generated during April-July of the current year, out of which 2,94,833 billion units were by the thermal power plant. This is 82 per cent of the overall power generation. more at: http://www.thehindubusinessline.com/companies/bhel-new-boiler/article6328467.ece

Ensure customer satisfaction, BHEL employees told

Mr. Krishnan was hoisting the national flag at the Independence Day celebrations at the Jawaharlal Nehru Stadium at Kailasapuram Township. The power sector would look up soon as power was essential to fuel economic growth, said A.V. Krishnan, Executive Director, Bharat Heavy Electricals Limited, Tiruchi, here on Friday. Competition in the sector was increasing with the rise in customer expectations in terms of faster delivery schedules and improvement in quality, Mr. Krishnan said and added that it was time for BHEL employees, suppliers, and vendors to rise up to the occasion to ensure cent per cent customer satisfaction. Mr. Krishnan was hoisting the national flag at the Independence Day celebrations at the Jawaharlal Nehru Stadium at Kailasapuram Township. more at: http://www.thehindu.com/news/cities/Tiruchirapalli/ensure-customer-satisfaction-bhel-employees-told/article6323387.ece

BHEL down about 8 percent after April-June earnings

Bharat Heavy Electricals Ltd (BHEL.NS) falls about 8 percent after April-June earnings lag estimates. Citi warned earnings imply BHEL's backlog may have dipped below 1 trillion rupees (16.33 billion U.S. dollar) for the first time since April-June 2009. Citi said BHEL might miss company's own sales and inflow targets in FY15. ref: http://in.reuters.com/article/2014/08/13/bhel-earnings-idINKBN0GD08520140813

BHEL Q1 net halves to Rs 193.5 cr on lower revenue, EBITDA

Bharat Heavy Electricals (BHEL) missed street expectations with the first quarter (April-June) net profit falling 58.4 percent year-on-year to Rs 193.5 crore due to lower revenues and weak operational performance. Profit in the year-ago period was Rs 465.4 crore. In Q1FY14, other income included forex gain of Rs 325 crore, which boosted profitability during that quarter. Analysts had expected the company to report profit of Rs 350 crore on revenue of Rs 6,135 crore for the quarter, according to CNBC-TV18 poll estimates. Net sales dropped 20.2 percent to Rs 5,068 crore in the quarter ended June 2014 from Rs 6,353 crore in the corresponding quarter of last fiscal on account of lower revenue from both power as well as industry segments. Power revenue went down by 23 percent on yearly basis to Rs 4,144.2 crore with earnings before interest and tax (EBIT) falling 30.8 percent to Rs 525 crore while revenue from industry segment dipped 12.3 percent to Rs 1,133 crore with EBIT declining by 70 percent to Rs 39.5 crore, said the company in its filing. Operating profit (EBITDA) of the power equipment maker slipped 44.2 percent year-on-year to Rs 217 crore and margin fell 180 basis points to 4.2 percent in April-June quarter, which both were lower than analysts' estimates of Rs 387 crore and 6.3 percent, respectively. Other income during the quarter was down by 35.4 percent to Rs 348 crore from Rs 538.5 crore while total expenses declined to Rs 5,209.6 crore from Rs 6,300.34 crore during the same period. Tax expenses were down by 74.2 percent Y-o-Y to Rs 52.4 crore but finance cost jumped to Rs 47.3 crore from Rs 27.8 crore and depreciation cost increased to Rs 272.5 crore from Rs 230.8 crore (due to change in depreciation method). The scrip of BHEL, which announced earnings post market hours, rose 0.79 percent to close at Rs 223.70 on the Bombay Stock Exchange. Read more at: http://www.moneycontrol.com/news/results/bhel-q1-net-halves-to-rs-1935-crlower-revenue-ebitda_1153426.html?utm_source=ref_article ref: http://www.moneycontrol.com/news/results/bhel-q1-net-halves-to-rs-1935-crlower-revenue-ebitda_1153426.html