BHEL Share Price Surge After Winning ₹10,000 Cr Damodar Valley Corporation Contract

Bharat Heavy Electricals (BHEL) saw a 2% rise in its share price during early trading on July 29 following the receipt of an order exceeding ₹10,000 crore.

At 09:28 AM IST, Bharat Heavy Electricals share price were trading at ₹323.60 on the BSE, reflecting an increase of ₹6.35 or 2.00%.

In an exchange filing, BHEL announced, “Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent (LOI) from Damodar Valley Corporation (DVC) for establishing the 2x800 MW Koderma Phase-II Thermal Power Station in Koderma district, Jharkhand on an EPC basis.”

According to the order's terms, BHEL will be responsible for supplying equipment such as the Boiler, Turbine, Generator, and associated auxiliaries, along with electrical and C&I, balance of plant packages, erection & commissioning, and other civil works, the company stated.

The project is scheduled for completion in 52 months. Additionally, the company’s board of directors will meet on July 31, 2024, to approve the Unaudited Financial Results for the quarter ending June 30, 2024.

In Q4FY24, BHEL reported a consolidated net profit of ₹489.6 crore, a 25.6% decline from ₹658 crore in Q4FY23, primarily due to increased expenses. However, on a sequential basis, the net profit grew significantly, rising sevenfold from ₹60.3 crore.

Consolidated revenue from operations experienced a slight year-on-year increase of 0.4%, climbing to ₹8,260.3 crore from ₹8,227 crore. Sequentially, revenue surged 50% from ₹5,503.8 crore.

Total expenses for BHEL, which include costs related to power and industrial equipment manufacturing, increased by 5% year-on-year to ₹7,794.1 crore in the fourth quarter, up from ₹7,411.6 crore. On a sequential basis, expenses rose by 40.8% from ₹5,537.5 crore.

Bharat Heavy Electricals Ltd (BHEL) is a leading manufacturer of power plant equipment in India, specializing in design, engineering, manufacturing, installation, testing, commissioning, and servicing of a wide range of products and services.

BHEL serves key sectors including power, transmission, industry, transportation, renewable energy, oil & gas, and defense. As India's premier engineering and manufacturing enterprise, BHEL is owned and operated by the Government of India.

The company has a market capitalization of ₹1,12,766.62 crore, as per the Bombay Stock Exchange (BSE), and falls under the BSE 200 category.