Saturday, October 31, 2009

BHEL bags power plant order from JPL

Bharat Heavy Electricals Limited has signed an agreement with Jindal Power Limited for setting up the 2,400 MW extension stage of OP Jindal Super Thermal Power Plant 4x600 MW in Chhattisgarh.

Valued at INR 50,400 million, the contract agreement was signed between BHEL and JPL in the presence of Mr Vilasrao Deshmukh union minister for heavy industries & public enterprises; Mr Naveen Jindal chairman of JPL, Dr Satyanarayana Dash secretary ministry of heavy industries & public enterprises and Mr BP Rao CMD of BHEL.

As per the current contract, BHEL will install four units of 600 MW each in this extension stage of OP Jindal STPP at Raigarh.

BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of boilers, steam turbines, turbo generators and associated auxiliaries along with state of the art controls & instrumentation system including generator and station transformers.

For the same customer, BHEL has earlier successfully executed 4 units of 250 MW each at OP Jindal STPP at Raigarh.

ref:
http://steelguru.com/news/index/2009/10/31/MTE4MjE4/BHEL_bags_power_plant_order_from_JPL.html

Sunday, October 25, 2009

BHEL net jumps 39% on reduced raw material prices

A fall in raw material costs helped state-run power equipment maker BHEL post 39 per cent rise in its net profit at Rs 857.88 crore for
the second quarter of the current fiscal.

"There has been substantial saving on raw material cost during quarter ending September 30 which helped us recording 39 per cent jump in net profits," CMD BHEL B P Rao told reporters here.

"The raw material cost as percentage of gross turnover during the second quarter (July-September) this year is 58.3 per cent as against 62.8 per cent during the corresponding period last fiscal," Rao said.

Asked whether the company would be able maintain such saving on raw material cost in the third quarter, he said, "Definitely... there will be saving on the raw material cost in the current quarter. We are expecting to improve our margins by 200 basis points (2 per cent) in this quarter."

BHEL had an impressive orderbook of Rs 1,25,800 crore at the end of July-September quarter.

"We got orders worth Rs 950 crore. The overseas business contributes 10-12 per cent to company's revenues," he said.

ref:
http://economictimes.indiatimes.com/news/news-by-company/earnings/BHEL-net-jumps-39-on-reduced-raw-material-prices/articleshow/5154220.cms

BHEL and NTPC: Profits a study in contrast

It has been a contrast in performance when it comes to the two large state-owned companies — Bharat Heavy Electricals (BHEL) and NTPC.

While BHEL seems to have stepped on the gas with a 40% profit growth — nearly double the growth rate for the previous two quarters — NTPC’s profit growth has slumped from an average of 30% over past three quarters, to barely 2%. For BHEL, profit growth also contrasts with average growth in single digits for the previous four quarters.

Even though BHEL’s sales growth of 24% is slightly lower compared to the previous quarter, it has managed a significant improvement in its profitability. This has come about with an almost 8 percentage-point reduction in raw material/sales ratio. BHEL had been sitting on high-cost raw material inventory until Q1FY10, and has seen the benefit of commodity meltdown only in this quarter.

The company looks well-poised to maintain its momentum, with its 25-30% guidance for sales growth. BHEL will be expanding its capacity by half, by the end of this financial year, which will enable it to execute projects faster. While the company had to wait for two-to- three quarters to get the benefit of softer raw material prices, it is now pretty well-positioned on this front also.


ref:
http://economictimes.indiatimes.com/Views/Recommendations/Inputs-save-day-profits-a-study-in-contrast/articleshow/5154779.cms

Thursday, October 22, 2009

BHEL Q2 PAT seen up 22% at Rs 752.4 cr

BHEL is set to announce its second quarter results of FY10. Its PAT (profit after tax) is expected to go up 22% at Rs 752.4 crore versus Rs 615.77 crore, YoY.

Net sales are seen going up 25% at Rs 6671.05 crore from Rs 5342.63 crore. OPM (operating profit margin) is seen improving to 14.39% versus 13.3%.


ref:
http://www.moneycontrol.com/news/result-poll/bhel-q2-pat-seen22-at-rs-7524-cr_420380.html

Tuesday, October 20, 2009

BHEL pays Rs 2.65 bn dividend to government

With a final dividend payout of 80%, Bharat Heavy Electricals (BHEL) has paid an equity dividend of 170% on the enhanced equity capital post-bonus for fiscal 2008-09, as against 152.5% paid in the year before. This includes an interim dividend of 90% paid earlier. At Rs 8,320 million, this is the highest-ever dividend paid by the company so far.

With this, the company has maintained its unmatched track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs 2,652 million towards the final dividend for the year 2008-09 on the equity (67.72%) held by the Government of India, was presented today to Pranab Mukherjee, Hon`ble union minister for finance by Vilasrao Deshmukh, Hon`ble union minister for heavy industries and public enterprises in the presence of Arun Yadav, Hon`ble union minister of state for heavy industries and public enterprises, Satyanarayana Dash, secretary, ministry of heavy industries & public enterprises and B.P. Rao, chairman and managing director, BHEL. (Q,N,C,F)*

Shares of the company declined Rs 8.75, or 0.35%, to trade at Rs 2,492.00. The total volume of shares traded was 35,681.00 at the BSE (12.27 p.m., Tuesday).


ref:
http://www.myiris.com/newsCentre/storyShow.php?fileR=20091020123852203&dir=2009/10/20&secID=livenews

Friday, October 16, 2009

BHEL in talks with overseas players for transmission JV

State run power equipment maker BHEL said it would finalize a global technology partner for the proposed joint venture to manufacture power transmission equipment within three months.

Mr B P Rao CMD of BHEL said in his first press conference after assuming charge of the company “The power transmission equipment (manufacturing) joint venture will be in place in the next three months, we are in talks with some international players,”

He however declined to divulge the name of the international firms. Earlier, this fiscal the company had announced collaborating with a foreign company for manufacturing power transmission equipment.

The JV would focus on manufacturing 765 KV and 1,200 KV transmission equipments. BHEL which has an order book of INR 125,000 crore expects to bag new contracts worth about INR 20,000 crore during the current fiscal.

ref:
http://steelguru.com/news/index/2009/10/17/MTE2NDQy/BHEL_in_talks_with_overseas_players_for_transmission_JV.html

Thursday, October 15, 2009

India BHEL order book at 1.3 tln rupees - chairman

Bharat Heavy Electricals Ltd (BHEL.BO) has got new orders worth 200 billion rupees ($4.3 billion) since April, including from Vedanta (VED.L) and Hindalco (HALC.BO), Chairman B.P. Rao said on Thursday.

The company's order-book was at 1.3 trillion rupees, he told reporters.


ref:
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBMA00616120091015

Govt says no plans to divest stake in BHEL

The government today ruled out any immediate plan to disinvest its stake in power equipment maker BHEL.

"There is no question right now," Heavy Industries Minister Vilasrao Deshmukh told reporters when asked if there will be disinvestment in BHEL.

He said the government owns 67 per cent stake in BHEL and there is no proposal for further disinvestment.

ref:
http://www.business-standard.com/india/news/govt-says-no-plans-to-divest-stake-in-bhel/76052/on

Tuesday, October 13, 2009

Bhel may tie up with Indian Railways to set up coach factory

Bharat Heavy Electricals Ltd (Bhel) may form an equal joint venture with Indian Railways to set up a factory at Kanchrapara-Halisahar railway complex in West Bengal with an annual capacity of 500 coaches for electrically powered trains.

While the move will help Bhel diversify its portfolio of offerings, it will also enable the railways to achieve its objective of partnering with the corporate sector to manufacture coaches and engines.

The land for the factory is to be made available by the railways. The decision to set up the factory through the joint venture or public-private partnership mode was announced by Mamata Banerjee in her railway budget speech and will require an investment of around Rs300 crore.

more at:
http://www.livemint.com/2009/10/13210420/Bhel-may-tie-up-with-Indian-Ra.html

Saturday, October 10, 2009

Bhel to cut delivery lag, increase capacity

Bharat Heavy Electricals Ltd (Bhel), India’s biggest power-equipment maker, plans to tighten delivery schedules and increase capacity as the government gears up to reduce the nation’s electricity deficiency.

“We have to scale up nearly two-and-a-half times,” chairman and managing director B. Prasada Rao said on Friday in New Delhi. “We need to get into an orbit of delivering 15,000MW of capacity each year.”

Bhel expects a rush of orders as Indian utilities prepare to almost double the country’s generation capacity in the next seven years from the current 152,148MW. The company is spending Rs1,590 crore to expand capacity to produce equipment capable of generating 20,000MW by March 2012, according to a statement on 17 September.

Orders worth Rs20,000 crore have been received for the financial year started 1 April, taking total contracts in hand to Rs1.25 trillion, Rao said. Bhel expects to form a venture to make power transmission equipment in the next three months, he said.

Prime Minister Manmohan Singh has pledged to spend Rs56,960 crore to add power plants and transmission lines in the year to 31 March. The government plans to add 78,700MW of generation capacity in the country in the five years to March 2012 and 100,000MW in the following five years.

India, the world’s second fastest growing major economy, faces a peak-hour power shortage of 12.6% this year, according to the Central Electricity Authority.


ref:
http://www.livemint.com/2009/10/09230531/Bhel-to-cut-delivery-lag-incr.html

BHEL to revamp offshore oil rigs biz

BHEL on Friday said it will approach shipyards for providing equipment used for making oil rigs.

"We would approach some shipyards for providing equipment for manufacturing offshore oil rigs... cannot name them (shipyards) as of now," BHEL CMD, B P Rao said here.

BHEL in talks with foreign cos for transmission JV

The company had earlier decided to quit its deep water oil rig business as it was unable to find a suitable partner arising out of investment constraints.

"Currently we are in onshore oil rigs business with ONGC and Oil India... we are engaged in refurbishment of these rigs," Rao said.

BHEL in talks with Areva, Toshiba for nuclear tie-ups

BHEL has manufactured and supplied over 80 drilling and well servicing rigs to both ONGC and Oil India.

The company's primary business is manufacturing power equipment and it plans to augment its manufacturing capacity for supporting 15,000 MW electricity generation by the end of this financial year and further enhance it to 20,000 MW by 2012.


ref:
http://sify.com/finance/equity/fullstory.php?a=jkkiCLgjcec&title=BHEL_to_revamp_offshore_oil_rigs_biz&cid=20753

Wednesday, October 7, 2009

BHEL looking at Africa for first factory abroad

Bharat Heavy Electricals Ltd (BHEL) is looking at Africa for setting up its first manufacturing facility abroad. The company had earlier zeroed in on the UAE, but decided to locate the plant in Africa.

A senior company executive said the location has not been finalised but it would cater to the company’s business in Africa and the West Asia. Africa, West Asia and Central Asia are the primary foreign markets for BHEL, dominant player in the power and heavy equipment business in India. It plans to increase its export revenue to Rs 10,300 crore by 2012.

The aim behind the new facility is that it would open the entire African and the West Asian market for the company. At present, BHEL has Rs 1,000 crore worth of business in Africa alone. “If we focus, we can get better access,” said the executive. BHEL earns about 15 per cent of its revenue from abroad. It recorded a net profit of Rs 3,039 crore on a revenue of Rs 27,505 crore in 2008-09. It aims to become a $10 billion (around Rs 47,200 crore) company by 2012.

The proposed overseas plant would manufacture switchgear and transformers. “We have been holding preliminary talks with various countries in Africa,” said the executive, without divulging names. The plans are in a discussion stage and nothing has been finalised till now, said another.

At present, BHEL’s international business is supported from India, with its presence overseas being limited to regional offices in Dubai and Jakarta. Its product profile for the international market ranges from thermal, gas and hydro generation to the transmission business. Though its products and services have been exported to over 70 countries, it has not established any production base outside India.

BHEL had earlier made plans for acquisitions abroad, including that of Czech power company Skoda Power AS’ turbine manufacturing facility and units for manufacturing boilers and railway coaches, among others. But these plans could never take off and now it appears to be focusing on putting up its own facility

ref:
http://www.business-standard.com/india/news/bhel-looking-at-africa-for-first-factory-abroad/372613/

Monday, October 5, 2009

BHEL to declare Q2 results on Oct 23, 2009

Bharat Heavy Electricals Ltd (BHEL) has announced that a meeting of the Board of Directors of the Company will be held on October 23, 2009, inter alia, to consider and take on record the Unaudited Financial Results of the Company for the Quarter ended September 30, 2009 (Q2).

The stock closed the day at Rs.2339.20, down by Rs.10.75 or 0.46%. The stock hit an intraday high of Rs.2389 and low of Rs.2311.

The total traded quantity was 119157 compared to 2 week average of 85344.


ref:
http://www.equitybulls.com/admin/news2006/news_det.asp?id=61108#

Saturday, October 3, 2009

Bhel appoints Atul Saraya as Director (Power)

Bhel today said it has appointed Atul Saraya as Director (Power) in the company.

Prior to this, he was heading the company’s power sector marketing function as well as Bhel’s power sector eastern region construction division as Executive Director, the company said in a release.

Saraya joined Bhel as an engineer trainee in 1976 and has 33 years of diversified and versatile professional experience of working in various functions of the company, the release added.

ref:
http://www.business-standard.com/india/news/bhel-appoints-atul-saraya-as-director-power/74897/on

B P Rao takes over as BHEL CMD

B P Rao takes over as BHEL CMD

ref:
http://www.business-standard.com/india/news/rao-takes-over-as-bhel-cmd/74774/on

I worked with him at Electronics Division, Bangalore ..... but I am not sure if he remembers me!

Anyway, I wish him all the best

Ramesh