Synopsis:
BHEL has secured large-scale EPC contracts from MPPGCL, collectively valued between Rs. 13,000 crore and Rs. 15,000 crore, for two supercritical thermal power units in Madhya Pradesh.
A PSU power equipment stock gained in trade after the company secured major EPC orders, highlighting continued demand in the thermal power segment. The notifications of award cover two supercritical power plants in Madhya Pradesh, reflecting robust domestic execution opportunities for power equipment manufacturers.
Bharat Heavy Electricals Limited, with a market capitalization of Rs. 82,820.88 crore, opened at Rs. 234.30, hitting an intraday high of Rs. 239.45, compared with the previous close of Rs. 233.85, marking an intraday gain of approximately 2.4 percent.
What’s the News?
BHEL has received Notifications of Award (NOA) from M.P. Power Generating Company Ltd. (MPPGCL) for two projects. The orders pertain to EPC packages for 1×660 MW Amarkantak Unit no. 6 and 1×660 MW Satpura Unit no. 12 Supercritical Thermal Power Plants in Madhya Pradesh. The EPC contracts include supply of equipment, erection and commissioning, and civil works.
The orders were awarded through an open domestic tender and are scheduled for completion within 57 months from the date of award. The total consideration for these contracts is in the range of Rs. 13,000 crore to Rs. 15,000 crore, excluding taxes and duties.
BHEL has confirmed that neither the promoter group nor group companies have any interest in MPPGCL, and the contracts do not fall under related party transactions.
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Financial Snapshot-Q1 Summary
Quarter-on-Quarter, BHEL’s sales declined to Rs. 5,487 crore from Rs. 8,993 crore, a drop of 38.9 percent. Operating profit fell to a loss of Rs. 537 crore from a profit of Rs. 832 crore, while profit before tax dropped to a loss of Rs. 608 crore from a profit of Rs. 704 crore. Net profit turned negative at Rs. 456 crore from a profit of Rs. 504 crore in the previous quarter.
Year-on-Year, sales were almost flat at Rs. 5,487 crore versus Rs. 5,485 crore. Operating loss widened from Rs. 169 crore to Rs. 537 crore, Loss before tax declined from Rs. 279 crore to Rs. 608 crore, and net loss widened from Rs. 211 crore to Rs. 456 crore.
About the Company
Established in 1964, Bharat Heavy Electricals is an integrated manufacturer of power plant equipment. The company is engaged in design, engineering, manufacturing, construction, testing, commissioning, and servicing across core sectors of the economy, including Power, Transmission, Industry, Transportation, Renewable Energy, Water, Oil & Gas, and Defence & Aerospace.
Written By Manan Gangwar
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