BHEL Secures Rs 4000 Crore Order from Adani Power’s Subsidiary

Bharat Heavy Electricals Limited (BHEL) in its latest exchange filing announced that the company has received an order from Mahan Energen Limited, previously known as Essar Power MP Limited. Mahan Energen Limited is now a wholly-owned subsidiary of Adani Power Limited. 

The contract involves providing equipment, including a Boiler, Turbine, and Generator, as well as overseeing the Erection & Commissioning for a 2×800 MW power project that utilizes supercritical technology. This project is in Bandhaura, Madhya Pradesh. BHEL’s facilities in Trichy and Haridwar will be responsible for manufacturing the Boiler and Turbine Generator, respectively. The total value of the order is approximately Rs 4000 crore, excluding GST. 

The expected delivery time for Unit-1 is 31 months, while Unit-2 is projected to be delivered within 35 months. 

The shares of the company opened the day at Rs 100.85. During intraday trading, the stock reached both a high of Rs 103.95 and a low of Rs 101.25. Currently, the shares are trading at Rs 103.65 each on the BSE. The current market capitalization of the company is Rs 36,091 crore. Furthermore, the company has achieved a multibagger return of 155 % over the last three years. 

In the June quarter of FY24, the company’s revenue from operations experienced a 7% YoY increase, rising from Rs 4,672 crore to Rs 5,003 crore. The operating loss of the company widened from Rs 170 crore to Rs 364 crore. Meanwhile, the net loss of the company amounts to Rs 344 crore, compared to Rs 188 crore in the corresponding quarter of the previous year. 

Bharat Heavy Electricals Ltd is an integrated manufacturer of power plant equipment, engaged in designing, engineering, manufacturing, erecting, testing, commissioning, and servicing a wide range of products and services for the core sectors of the economy, namely power, transmission, industry, transportation, renewable energy, oil & gas, and defence. It serves as the flagship engineering and manufacturing company of India owned and controlled by the Government of India. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.