BHEL Shares Recovers After Securing Order of Rs 3500 Crore From Adani Power

BHEL received an order of Rs 3,500 crore from Adani Power Limited on Wednesday, June 5, to set up a 2x 800 MW thermal power plant in Raipur, Chhattisgarh. 

Under the contract signed on June 5, 2024, Bharat Heavy Electricals Limited (BHEL) will supply equipment, including boilers, turbines, generators, and associated auxiliaries, and supervise the erection and commissioning of the power project based on supercritical technology. 

The equipment comprising boilers and turbine generators will be manufactured at BHEL’s Trichy and Haridwar plants respectively. The award has been rewarded by the Adani Power. The time frame for the execution of order stipulates the supply of unit-1 in 35 months and unit-2 in 41 months.

BHEL has secured an order from Mirzapur Thermal Energy (UP) Private Limited to set up a 2x800 Megawatt thermal power plant project at Mirzapur phase 1 in U.P. This order is also valued at Rs 3,500 crore. 

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BHEL’s Financials Update in Brief

BHEL posted a net profit of Rs 489.6 crore in Q4 ended on March 31, 2024. It showed 25.6% on YoY decline. Earlier, in the same period BHEL reported a net profit of Rs 658 crore. The company’s revenue increased 0.40% to Rs 8,260.3 crore against Rs 8,227 crore period ended on March 31 2023. 

The company’s EBITDA dropped 30.6% to Rs 727.9 crore in the Q4 of FY23 compared to Rs 1.049 on year-on-year basis. The EBITDA margin stood at Rs 8.8% in the reporting quarter againsts 12.8% in the year ago period. 

BHEL Share Price Update

BHEL share price registered gains of more than 10% in the last two trading sessions and is currently trading at Rs 281 per share. PSU shares got badly hit on the election day and BHEL is one of them but investors seem highly bullish and confidently investing in the future outlook of BHEL. 

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