The shares of this leading power equipment manufacturer surged over 3 percent after securing an order worth Rs.10,000 crore for the development of Damodar Valley Corporation project.
Share Price Movement
On Monday’s trading session, at around 9.45 am, the share price of BHEL (Bharat Heavy Electricals Ltd.) gained more than 3 percent reaching an intra-day high of Rs.327.7 per share from its previous close of Rs.317.52 apiece.
What happened
BHEL received a Letter of Intent (LOI) from Damodar Valley Corporation (DVC) for the establishment of the 2×800 MW Koderma Phase-II, Thermal Power Station in Koderma district, Jharkhand, on an EPC (Engineering, Procurement and Construction) basis.
According to the terms of the order, BHEL will handle the supply of equipment, including the Boiler, Turbine, Generator, and associated auxiliaries, as well as electrical and C&I systems, balance of plant packages, erection and commissioning, and additional civil works, the company stated.
The project is anticipated to be completed within 52 months. The total value of the order exceeds Rs.10,000 crore, excluding taxes and duties.
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Financial Performance
In Q4FY24, Bharat Heavy Electricals Ltd (BHEL) reported a consolidated net profit of Rs.489.6 crore, a 25.6 percent decrease from Rs.658 crore in Q4FY23, primarily due to increased expenses. However, the company’s net profit surged by 712 percent sequentially from Rs.60.3 crore in Q3FY24.
Consolidated revenue from operations experienced a modest year-on-year increase of 0.8 percent, rising to Rs.7,883.88 crore in Q4FY24 from Rs.7,819.3 crore in Q4FY23. Sequentially, revenue grew by 50 percent from Rs.5,273.5 crore in Q3FY24.
Additionally, the company has set August 9, 2024, as the record date for determining eligibility for a final dividend of Rs.0.25 per share with a face value of Rs. 2 each for FY 2023-24.
Order book
As of March 2024, Bharat Heavy Electricals Limited (BHEL) reported a strong order book exceeding Rs.1.30 lakh crore.
The company reached its highest-ever quarterly order bookings in Q4 FY24, with order inflows totaling Rs.41,859 crore, up from Rs.8,316 crore in the same quarter the previous year.
Shareholding Pattern
As of June quarter 2024, the promoters of the company hold a 63.17 percent stake in BHEL, while Domestic Institutional Investors (DII) own 15.03 percent. Foreign Institutional Investors (FII) have a 9.1 percent stake, and Retail investors possess a 12.71 percent stake.
About the company
Bharat Heavy Electricals Ltd (BHEL) is a leading power plant equipment manufacturer in India. The company specialises in the design, engineering, manufacturing, installation, testing, commissioning, and servicing of a diverse array of products and services.
Written by – Siddesh S Raskar
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