Monday, March 31, 2008

PG Certificate Course in Occupational Health

Do yoiu know that BHEL offers PG Certificate Course in Occupational Health ?

Click on
http://www.bhel.com/pdf/AFIH_Online_Prospectus.pdf

Ramesh
The Human Search Engine
alluwanted.com

BHEL gets Rs 550cr export order

Bharat Heavy Electricals (BHEL), has won a Rs 550 crore order to supply two 135 Mw boilers to Koniambo Nickel SAS, a company based in New Caledonia, an island in the south-west Pacific Ocean, east of Australia.

Koniambo is a joint venture company between Swiss mining group Xstrata Plc and and a local company.

This is the first-ever overseas order BHEL has won for delivery of circulating fluidised bed combustion (CFBC) boilers for utility application. With this, the company has made an entry in the European market for the environment-friendly product meeting stringent emission norms.

ref:
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=35096

Sunday, March 30, 2008

BHEL shares /Stock

While I am not an Investor in Share market, I used to track some shares for fun. I know it is good market for investment. However, Finance is not my cup of tea.

But I regret for not taking the opportunity of owning BHEL shares when I was working at BHEL ( 1980-1999). And the Provident Fund loan was even arranged :-(

Some stupid logic prevented me grabbing that opportunity that time. Now the share is hovering around Rs 2000. I wish I had some shares, just to be part of BHEL, which gave me a lot in my life.

Probably, I may buy some in future, when I can!

Friday, March 28, 2008

Don't see slowdown in capital goods industry: BHEL

CS Varma, CFO, BHEL said that their current order book stands at Rs 81,856 crore and that they have a total capex of Rs 4200 crore over the next two years.

Speaking to CNBC-TV18, Varma said he sees no slowdown in the capital goods industry. According to him, they are the only bidders for NTPC’s bar extension programme and they may bag the order soon. He added that they have bagged orders to the tune of 38385 megawatts.

Excerpts of CNBC-TV18’s exclusive interview with CS Varma:

Q: The last IIP numbers that came out said that the capital goods industry has grown at just 2.1%, it was something that was sharply lower than it’s comparative figures. In your assessment, are you sensing a slowdown in the industry and order intake at this point of time or do you think that this was just one of, as a blip?

A: Not at all, in fact, for the purpose of proper comparison we have to take the figures for the year as a whole and not some periodic figure. So a proper comparison will be when we take the figures of the year as a whole. I have given you the brief synopsis of how BHEL is booming and it is playing a major part in the power sector. Power sector is a very important sector in the total infrastructure sector in the Indian economy.

Q: How does this translate into what your order book is currently standing at and how do you think that this would grow, going into FY09?

A: As on date, our order book position in financial terms is at Rs 81,856 crore. The power sector accounts for a majority of the orders which is about Rs 70,000 crore, the industry sector is about Rs 8300 crore and international operation is about Rs 4200 crore. I have already mentioned that the capacity addition programme of the Government of India, in the 11th 5-year Plan is 79725-megawatt. Out of this, the bulk of the orders have already been placed. Except for 9800-megawatts, all the order is complete and BHEL has secured orders in physical terms of 38,385-megawatt which constitutes about 55% of the total orders placed in power sector.

Q: You mentioned the industrial segment, spares and services, R&D, international operations, will all those make an increased contribution to your revenues for the year ahead before the 12th year plan orders start kicking in?

A: We are already having a strategic plan for the terminal year which is 2011-2012 whereby we have envisaged the role of power sector, industry sector, international operations. Power sector is booming, at the same time our industry sector is also keeping pace with the growth of industry in India.

Q: How much would its contribution to your revenues go up by?
A: About 25% is being contributed by the industry sector.

Q: Specifically in terms of rupee-crore, between now and 2009-2010, what is the outlay that BHEL has in terms of capital spending?

A: About our capital investment programme, our capex is Rs 4,200 crore. As far as the rupee movement is concerned, we are having a natural hedge. Our imports and exports are more or less equal and as a matter of strategy, we have taken a decision to put all our inflows in the EFC account. Now the government of India has permitted interest payment, in a limited way, in the inflows being put in this account. Thus there is a natural hedge but we are also having a foreign exchange policy approved by the board of directors of BHEL. So as and when there is a benchmark limit which is reached, we take option cover including, the vanilla cover.

Q: We believe that you have emerged as a lowest cost bidder for NTPC and SEB orders on the super critical units and you believe to be in talks with two state governments as well to pick up equity stakes in power plants based on the super critical technology. What is the kind of investment that is likely there and when is it likely to actually take full shape?

A: Our capex programme for the eleventh 5-year plan is Rs 4,200 crore and this takes into account our investment in the super critical technology also. Now we are bidding and we are likely to get the orders.

We are already L1, we are the only bidder in case of the bar extension project of NTPC and I think the order is likely to be placed very shortly. We have also bid in the Apgenco Krishnapatanam. Earlier we were the loan bidders, but then since we were the loan bidders, the bid was cancelled. Now they had again invited bids where we have bid along with one more bidder L&T.

The evaluation is under process and I think BHEL will come out as a winner. This order, if it is coming to BHEL, will come in the first quarter of the next financial year. Besides we are also going through the JV route, we have formed a JV in association with the TNEB.

Q: One very big concern that analysts have with regards to your company is the concern over super critical technology and the kind of contracts that you have tied up to that effect. Is that a concern at BHEL?

A: Not at all, in fact, all our future technologies are super critical only. As per the estimates given by the Planning Commission, a 10% capacity addition programme in the 11th 5-year plan will be based upon super critical. This 10% will go to 70% in the 12th 5-year plan. We are fully geared up to face this challenge.

ref:
http://www.moneycontrol.com/india/news/market-outlook/dont-see-slowdowncapital-goods-industry-bhel/15/22/331740

Thursday, March 27, 2008

BHEL: Powerhouse

If the recommendations of the Sixth Pay Commission are fully implemented, there would be an incremental burden on the exchequer of Rs 7,975 crore each year. The panel is set up every 10 years to review the emoluments and pay of Central government employees.

Following the development, most Central PSUs will feel the blow of rising staff costs in their financials to some extent. Bharat Heavy Electricals (Bhel), India's largest power equipment maker, is expected to see a decline of 50 basis points in its operating profit margins for every 5% rise in wage costs, analyst Vinod Chari of Credit Suisse Group said in a note to clients on Wednesday.

Chari cut Bhel's share price target by 13% in the next 12 months to Rs 2,714 and has cut the earnings per share estimates for the year ending March 2010 by 8%, on anticipation that wages may climb 40% from 30% expected earlier.

Another concern for Bhel lately has been the dumping (as the currency is undervalued) by Chinese companies. The price difference is said to be up to 20%.

However, Bhel maintains that its equipment are relatively better than those of rivals and that the plant load factor of its projects is 90% as against 60% in case of Chinese equipment.

While the Sixth Pay Commission brings with itself some form of margin pressure for Bhel, the good part is that the company is experiencing robust order inflows. Bhel's new products, new technology and new captive power clients or independent power producers are driving order inflows.

Bhel is currently sitting on an order book of over Rs 82,000 crore, which reflects a 49% YoY growth led, by order intake of Rs 11,000 in Q4FY08 on new order flows. Revenues for the quarter increased 14% YoY to Rs 4,964.14 crore, while net profit increased by 15.6% to Rs 771.9 crore.

Bhel is expected to perform well in future, given its robust order book, access to super critical orders and efforts to improve competitiveness.

The stock has outperformed the broader Sensex and appreciated by 73.4% against the Sensex's increase of 22.5% in the past one year. At Rs 1,954.95, the stock trades at 22.4 and 18.03 times its estimated earnings for 2009 and 2010, respectively. It is a good pick in its space.

Under license from www.3dsyndication.com


ref:
http://sify.com/finance/fullstory.php?id=14630977

Wednesday, March 26, 2008

BHEL help to boost Patratu power

Ranchi, March 26: The state electricity board has asked Bharat Heavy Electricals Limited (BHEL) to repair the units at Patratu Thermal Power Station, Jharkhand’s oldest such facility.

With internal power generation barely sufficient to meet 50 per cent of the state’s energy demand, Jharkhand State Electricity Board (JSEB) decided to call in BHEL to improve performance.

Four units at Patratu were installed by BHEL more than 20 years ago. Czech firm Skoda installed the rest of the 6 units. These units are more than 36 years old.

The units made with help from USSR have an installed capacity of 840MW. The BHEL units have and installed capacity of 840MW. Patratu generate an average of 40 to 110MW on any given day.

JSEB chairman Brij Mohan Verma said they decided to call in BHEL to improve production.

“We asked BHEL to inspect the units at Patratu Thermal Power Station, particularly units 9 and 10, which were badly damaged in a fire more than five years ago. The first round of talks with BHEL engineers was held at Ranchi recently. A crucial meeting with BHEL chairman is slated at Delhi in the first week of April,” said Verma.

The JSEB chairman said the engineers have taken a good look at Patratu units and have inspected the two units that JSEB wanted them to work on.

Efforts are underway to get the two units repaired at the earliest so that they could be made operational by the end of the year. Verma pointed out that unit 6 is expected to be commissioned by the end of this month while unit 4 would be working by the end of April. “By the end of the year, JSEB is aiming at generating more than 500MW from Patratu,” Verma added.
Source:
http://www.telegraphindia.com/1080327/jsp/jharkhand/story_9062347.jsp

Tenders

BHEL posts the tenders on the website and one may register as a vendor and apply !

5 bids are posted today - 26 Mar 2008

Ramesh

Tuesday, March 25, 2008

BHEL to spend Rs 5,000 cr on JVs

Bharat Heavy Electricals Ltd (BHEL) is likely to spend nearly Rs 5,000 crore over the next three years in its yet-to-be-formed joint venture companies with power utility NTPC and Nuclear Power Corporation of India Ltd (NPCIL).

“Some of this money will also be spent on other possible ventures with private sector companies,” said BHEL Chairman and Managing Director K Ravi Kumar.

BHEL and NTPC agreed to form a joint venture in September last year to construct power plants and also manufacture power equipment. Kumar said the new company was likely to be formed by next month. The proposed company will take up projects both in the country and overseas.

A joint venture with NPCIL is also likely to be formed in the “first half of the next financial year,” Kumar said. The joint venture is likely to take up engineering, procurement and construction for nuclear power plants in India and overseas.

NPCIL, which is the only company mandated to set up nuclear plants in India, currently generates about 3,900 Mw of electricity from its 16 power plants. The company plans to more than double its capacity to 10,000 Mw over the next six years.

BHEL has supplied almost 80 per cent of the nuclear power equipment currently used in the country.


Click here for more details

Monday, March 24, 2008

Bhel plans capacity expansion in Trichy

Chennai, March 23 Bharat Heavy Electricals Limited (Bhel) at Tiruchirappalli in Tamil Nadu has embarked on a major capacity augmentation scheme. It has invested Rs 190 crore on equipment to produce 10,000 mw of power capacity equivalent per year and will be investing Rs 732 crore to further enhance the capacity to15,000 mw.

The initiatives are in line with the Central Electricity Authority’s capacity addition target of 78,577 mw for the Eleventh Plan, the company said here. Bhel Tiruchirappalli, which has achieved a record turnover of Rs 4,607 crore during fiscal 2006-07 with an all-time high profit before tax of Rs 872 crore, has now spruced up its construction activity to complete the second phase of its capacity augmentation scheme at an investment of

Rs 732 crore.

The second phase of expansion will be completed by March 2009, said a senior official of the company. The first phase was completed within a very short period at an estimated cost of Rs 190 crore, the official added.

According to the official, Bhel is setting up facilities to make 800 mw/1,000 mw super critical boilers at its Trichy plant.

The on-going phase-II will now focus on raising the overall installed capacity through the introduction of 75 types of high productive machines, the official said.

The total covered shop floor area, with associated office buildings, machinery, material handing, testing and support facilities added in the two phases will be around 1.25 million sq ft (around 1,12,000 sq m), the official added.

Reported at: http://www.financialexpress.com/news/Bhel-plans-capacity-expansion-in-Trichy/287669/

Sunday, March 23, 2008

Chinese firms dumping, but it is okay: BHEL

Bharat Heavy Electricals (BHEL) has accused Chinese companies of grabbing equipment supply contracts for mega power projects by dumping, but the navratna PSU has declined to move the government on the issue.

"The Chinese currency, yuan, is under-valued. There is a case of dumping," K Ravi Kumar, chairman and managing director, BHEL, told PTI when asked as to why his corporation lost out on contracts for the two ultra mega power projects (UMPPs) to Chinese companies.

He added: "I dont want to take up (the issue) in a very aggressive way. I will consider...we need not go and fight with the Chinese. We don't want 100% market share. With 60% market share and enough profits, it should be okay with us."

In terms of performance, BHEL equipment were much better than the competitors, Ravi Kumar said, and referred to independent studies to establish that the plant load factor of its projects was 90% while it was 60% in the case of Chinese equipment.

Claiming that BHEL was fully geared up for any competition from China, Ravi Kumar said there was a price difference of up to 20% and the Chiense valuation was also not as per international competition. "Today, we have almost matched the Chinese price...we are very competitive," he said, adding BHEL had an advantage of giving complete solutions for any project as against product leaders like Siemens and GE and cost leaders like Chinese companies.

Friday, March 21, 2008

BHEL pays Rs. 298 crore dividend

Bharat Heavy Electricals Limited (BHEL) on Friday paid an interim dividend of Rs. 298 crore to the Government for 2007-08.

The company paid a total interim dividend of Rs. 441 crore, which is 90 per cent of its enhanced equity capital post-bonus, to its shareholders during 2007-08, K. Ravi Kumar, Chairman and Managing Director, told newsmen after presenting the cheque.

The cheque for Rs. 298 crore was handed over to the Heavy Industries Minister, Santosh Mohan Deb, in his office. The Union Government owns 67.72 per cent equity in the firm.

BHEL recorded a net profit of Rs. 1,749 crore in the first nine months of 2007-08, a 38 per cent growth over the corresponding period in the previous year.

BHEL: Made to order

Bharat Heavy Electricals Ltd (BHEL) has been seeing strong order inflows for the last couple of years.The latest one is worth Rs 2030 crore and is for the supply of equipment for the 1,000 mw Nabinagar thermal power project.

The firm is expected to close FY08 with orders for more than 15,500 mw compared with orders for 9,900 mw in FY07.

While the momentum could taper off in the next couple of years with orders growing at just about 5 -10 per cent in each year, the outstanding orderbook of Rs 78,000 crore as at the end of December 2007, and the additional capacity being created, would ensure that the pace of execution remains brisk.

BHEL has already ramped up its capacity to 10,000 MW and this will be further increased to 15,000 mw total investment of Rs 3,200 crore.

Thursday, March 20, 2008

BHEL bags Rs 2,030-cr order for NTPC's Bihar project

NEW DELHI, Mar 18, 2008 (The Economic Times - McClatchy-Tribune Information Services via COMTEX) -- NO MATCHES FOUND. | news | PowerRating | PR Charts -- Power equipment maker Bharat Heavy Electricals (BHEL) on Monday said it has secured order worth Rs 2,030 crore for supply of main plant package to a 1,000-mw project in Bihar, being set up by NTPC and the Indian Railways.

The order for the 1,000-mw Nabinagar Thermal Power project has been placed by Bhartiya Rail Bijlee Company, a JV of NTPC and the Indian Railways, BHEL said in a statement. "With this, BHEL has won all the thermal power plant orders finalised by NTPC and its JVs," it added.

To see more of The Economic Times, or to subscribe to the newspaper, go to http://economictimes.indiatimes.com Copyright (c) 2008, The Economic Times, India Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA

Monday, March 17, 2008

BHEL bags Rs.20.3 bn equipment supply contract

State-owned power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) will supply equipment worth Rs 20.3 billion ($507.5 million) to the envisaged 1,000 MW Nabinagar thermal power project in Bihar.

"The order has been placed on BHEL by Bhartiya Rail Bijlee Co Ltd, a joint venture formed by central utility National Thermal Power Corp (NTPC) and Indian Railways to implement the project," BHEL said in a statement.

"The company has won the project in an international competitive bidding," it added.

"The project will comprise four units of 250 MW each. BHEL has agreed to commission the entire envisaged power generation capacity of the project by March 2012," the company said.

"The proposed plant will generate 24 million units of electricity a day on commissioning," it said.

ref:
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=3753f22a-4e62-4b3a-b26a-c9a4a83aef60&&Headline=BHEL+bags+Rs.20.3+bn+equipment+supply+contract