Maharatna stock jumps over 3% after receiving ₹7,500 Cr order from Gujarat Govt

On Friday’s trading session, the shares of an integrated power plant equipment manufacturer surged 3.5 percent on BSE, after the company secured an order worth around Rs. 7,500 crores from Gujarat State Electricity Corporation Limited (GSECL).

Price Movement

At 11:46 a.m., the shares of Bharat Heavy Electricals Limited were trading in the green at Rs. 212.25, up by 2.8 percent, compared to its previous closing price of Rs. 206.45, with a market capitalisation of Rs. 73,906.8 crores. The stock has delivered negative returns of nearly 11 percent over a one-year period, but around 8 percent of positive returns in the last one month.

What’s the news

As per the latest regulatory filings with the stock exchanges, Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent (LOI) from GSECL for the Engineering, Procurement, and Construction (EPC) package for the 1×800 MW Ukai Extension Unit No. 7 TPS in Tapi District, Gujarat, India.

Under this agreement, BHEL will supply equipment including the boiler, turbine, generator, and associated auxiliaries, along with electrical and control & instrumentation (C&I) systems, and Balance of Plant packages. The company will also handle the erection and commissioning works, as well as civil works. The commercial operation is expected to be completed within 54 months.

Previous Orders

11th February: BHEL secured a Letter of Intent (LOI) valued at Rs. 6,200 crores from Damodar Valley Corporation (DVC) in Kolkata for the Steam Generator Island Package for the 2×660 MW Raghunathpur Thermal Power Station Phase-II project in Purulia district, West Bengal, India. 

The order includes the supply, erection, testing, and commissioning of steam generators and auxiliaries, ESP, FGD systems, and ash handling systems, along with electrical, C&I, and associated civil works.

14th February: The company received an order worth Rs. 6,700 crores from Singareni Collieries Company Limited (SCCL) for the EPC package of the Singareni Thermal Power Project, Stage II (1×800 MW), located in Mancherial district, Telangana, India. 

This order involves the supply, erection, testing, and commissioning of the boiler, turbine, generator, FGD, and associated auxiliaries, along with electrical, C&I, Balance of Plant packages, and associated civil works.

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Financials & Order Book

BHEL reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 32.2 percent, increasing from Rs. 5,504 crores in Q3 FY24 to Rs. 7,277 crores in Q3 FY25.

During the same period, the company’s net profit increased from Rs. 60 crores to Rs. 135 crores, representing an impressive growth of around 125 percent YoY.

As of 30th October 2024, BHEL’s outstanding order book stands at more than Rs. 1.6 lakh crore, with an order inflow of Rs. 41,087 crores.

About the company

Bharat Heavy Electricals Limited (BHEL), an integrated power plant equipment manufacturer, is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for sectors including power, transmission, industry, transportation, renewable energy, water, oil & gas and defence & aerospace.

Written by Shivani Singh

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