BHEL Achieves 52-Week High Following a Major EPC Contract Win

The Indian engineering and manufacturing giant Bharat Heavy Electricals Limited (BHEL) have recently witnessed a significant upsurge in its stock value, reaching a 52-week high. This surge is attributed to the company’s latest achievement – securing a substantial EPC (Engineering, Procurement, and Construction) contract.

Stellar Stock Performance

In the early trading hours of January 15, BHEL’s stock soared to a notable high of Rs 205.60. As of 09:19 am, it was trading at Rs 201.70, marking an increase of Rs 5.30, or 2.70 per cent, on the Bombay Stock Exchange (BSE). This rise reflects the market’s positive response to BHEL’s recent contract win.

The Landmark EPC Contract

The contract, a major boost for BHEL, involves an EPC package for the 3×800 MW NLC Talabira Thermal Power Project (NTTPP) located in Jharsuguda district, Odisha. Awarded by NLC India, this project is a significant addition to BHEL’s portfolio.

Manufacturing and Supply Details

BHEL plans to manufacture the major equipment required for this project across its various plants located in Trichy, Haridwar, Hyderabad, Jhansi, Bengaluru, Ranipet, Bhopal, Rudrapur, and Varanasi. The contract encompasses a wide range of responsibilities, including the erection and commissioning, civil works, and supply of Boiler, Turbine, Generator (BTG), associated auxiliaries, along with electrical and Control & Instrumentation (C&I), and Balance of Plant Packages.

Contract Value and Timeline

The contract, valued at a whopping Rs 15,000 crore, is set to be executed over a period of 64 months. This project is not just a financial win but also a testament to BHEL’s capabilities in handling large-scale power projects.

Financial Performance in Q2FY24

Despite this recent success, BHEL reported a consolidated net loss of Rs 238.12 crore in the second quarter of the fiscal year 2024 (Q2FY24). This was in contrast to the profit of Rs 12.10 crore in the same period of the previous fiscal year. The total income for the reported period slightly decreased to Rs 5,305.38 crore from Rs 5,418.74 crore year-on-year.

BHEL’s recent contract win and its impact on the stock market highlight the company’s resilience and capability in the power sector. While the company faces financial challenges, its ability to secure and execute large-scale projects remains a strong indicator of its potential for future growth and stability in the market.