BHEL shares zoom 10% on securing thermal power project from Adani Power

Shares of State-owned Bharat Heavy Electricals Ltd (BHEL) soared up 9.99 per cent at Rs 280.75 per share on the BSE in Thursday’s intra day deals. This comes after the public sector undertaking (PSU) secured an order exceeding Rs 3,500 crore from Adani Power Limited for establishing a thermal power project in Raipur, Chhattisgarh. 

The contract, signed on June 5, involves the supply of equipment (boiler, turbine, generator) and supervision of erection and commissioning for a 2x800 mega watt power project based on Supercritical Technology, as stated in BHEL's exchange filing. 

The order's total worth exceeds Rs 3,500 crore, excluding GST.  BHEL specified that the boiler and turbine generator would be manufactured at its Trichy and Haridwar plants, respectively.

BHEL is one of India's largest engineering and manufacturing enterprises, particularly prominent in the energy and infrastructure sectors. Apart from its primary focus on power equipment, BHEL is actively expanding its expertise into areas including defence, aerospace, urban mobility, and railways. 

In the January-March quarter of FY24, the company recorded a consolidated net profit of Rs 489.62 crore, marking a decline of 25.6 per cent from Rs 658.02 crore in the same period last year, primarily due to increased expenses. However, the firm's net profit surged sevenfold from Rs 60.31 crore sequentially. 

Consolidated revenue from operations witnessed a marginal Y-o-Y growth of 0.4 per cent, reaching Rs 8,260.25 crore compared to Rs 8,226.99 crore, while sequentially, revenue soared by 50 per cent from Rs 5,503.81 crore.

At 09:25 AM; the stock of the company was trading 9.99 per cent higher at Rs 280.75 a piece. By comparison, the BSE Sensex was trading 0.48 cent higher. The stock of the PSU has rallied 57.38 per cent in the last six months, while climbing 234.94 per cent in the last one year.