Bharat Heavy Electricals Limited (BHEL) received an order from NHPC Ltd worth Rs 2241.86 crore excluding taxes. The order is for design, engineering, manufacturing, supply, erection and commissioning of electro-mechanical package involving turbine, generator, digital governing system, static excitation system, transformers, bus reactors, gas insulated switchgear, outdoor pot yard & switchyard equipments and electrical & mechanical bops for 12×240 mw electro-mechanical works of Dibang multipurpose project at Roing in Arunachal Pradesh.
In a regulatory filing, BHEL said that the major equipment for the contract will be manufactured by BHEL’s plants at Bhopal, Bangalore, Jhansi and Rudrapur. The on-site execution activities will be carried out by the company’s Power Sector – Eastern Region division, Kolkata. The order is to be executed within 75 months.
“With this order YTD orders came in at ~Rs 21.80 thousand crore. We believe, pickup in thermal power orders and companies focus on diversification in segments such as railways, defence, nuclear, hydro augurs well for the company in the long term,” said Amit Anwani, Research Analyst, Prabhudas Lilladher Pvt Ltd.
Just weeks ago, BHEL had announced a partnership with Italy’s Leonardo S.p.A (formerly Finmeccanica) for the supply of air defence guns to the Indian Army. A request for proposal for air defence guns was issued by the Ministry of Defence (MoD) in October last year. The proposal is for 220 air guns and 1.42 lakh rounds of ammunition. The estimated contract value is marked around Rs 6,500 crore, it had said.
Earlier in May, BHEL had said that it has logged over 17 per cent growth in new orders bagged in 2022-23 to Rs 23,548 crore compared to the previous year due to its diversified business approach. BHEL secured new orders worth Rs 20,078 crore in 2021-22, according to a company statement. “BHEL secured orders worth Rs 23,548 Crore (excluding taxes) during 2022-23 in its power, industry and export segments and the company ended the year with a total order book of over Rs 91,336 crore (excluding taxes),” it had stated.
However, during its first quarter earnings announcement for FY24, BHEL had posted a loss at Rs 343.89 crore, widening from Rs 187.99 crore during the corresponding quarter of last year, primarily due to higher expenses. It posted revenue from operations at Rs 5003.43 crore, up 7.1 per cent as against Rs 4672 crore during the first quarter of FY23.
