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Bhel gains after bagging new order

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Capital Market
Last Updated : Jun 19 2014 | 9:30 AM IST

Bhel rose 0.86% to Rs 182.20 at 9:26 IST on BSE after the company said it won a Rs 450 crore contract for renovation and modernisation of a 210 megawatts thermal unit in Maharashtra.

The company made the announcement on Tuesday, 18 June 2013.

Meanwhile, the S&P BSE Sensex was down 27.26 points, or 0.14%, to 19,196.02.

On BSE, 17,000 shares were traded in the counter as against an average daily volume of 4.18 lakh shares in the past one quarter.

The stock hit a high of Rs 182.30 and a low of Rs 181 so far during the day. The stock had hit a 52-week low of Rs 174.20 on 13 June 2013. The stock had hit a 52-week high of Rs 272.45 on 5 October 2012.

The stock had underperformed the market over the past one month till 18 June 2013, sliding 10.28% compared with the Sensex's 5.24% fall. The scrip had also underperformed the market in past one quarter, falling 7.93% as against Sensex's 0.36% fall.

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The large-cap state-run power equipment major has an equity capital of Rs 489.52 crore. Face value per share is Rs 2.

The World Bank-funded contract has been placed on Bhel by the Maharashtra State Power Generation Corporation (MSPGCL). With this order, Bhel has made an entry into the energy efficient renovation, modernisation and uprating business.

More and more utilties in the country are preparing to go in for renovation and modernisation of aging thermal units to extend the life of the plants as well as to maximize generation, Bhel said in a statement.

Bhel's scope of work in the contract involves design, engineering, manufacture, supply and erection & commissioning of critical parts of the boiler, turbine and generator, along with their controls & instrumentation. The order also envisages uprating of the unit.

Major equipment for the above contract will be manufactured and supplied by the company's plants at Trichy, Ranipet, Haridwar, Hyderabad and Bangalore.

Bhel's net profit fell 4.2% to Rs 3237.54 crore on 2.2% decline in net sales to Rs 18850.16 crore in Q4 March 2013 over Q4 March 2012.

Bhel is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.

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First Published: Jun 19 2013 | 9:30 AM IST

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