BHEL bags orders worth ₹11,000 crore from Adani Power and its subsidiary, shares gain over 2%

The state-owned company has signed a contract agreement with Adani Power (APL) and its subsidiary Mahan Energen Limited (MEL) to establish three Supercritical Thermal Power projects in Rajasthan and Madhya Pradesh, each with a rating of 2x800 MW.

BHEL stock opened trade at ₹297.75 a piece on NSE, marginally higher from the previous close of ₹296.20 and gained further to hit an intraday high of ₹304 per share.

The contract involves the supply of equipment, including boilers, turbines, generators, and associated auxiliaries with control and instrumentation. BHEL will also supervise the erection and commissioning of the three power projects.

The projects will be based on Supercritical Technology at Kawai (Phase-II) and Kawai (Phase-III) in Rajasthan (of Adani Power) and at Mahan (Phase-III) in Madhya Pradesh for Mahan Energen.

The total consideration for the three large orders exceeds ₹11,000 crore, excluding GST charges. The orders are expected to be executed and completed in 49 months for the Kawai Phase-II contract, 52 months for Kawai Phase-III, and 55 months for the Mahan Phase-III contract.

For the quarter ended June 30, 2024, Bharat Heavy Electricals Limited posted a consolidated net loss of ₹211.40 crore, widening from ₹204.7 crore loss posted in the April-June period of the preceding fiscal year.

Its total income, however, rose 9% year-on-year (YoY) to ₹5,581.78 crore in the first quarter of financial year 2024-25 as against a reading of ₹5,117.20 crore in the year-ago quarter.

The company’s expenses also grew almost 9% YoY in Q1 FY25 to ₹5,874.98 crore as compared to ₹5,409.47 crore in the corresponding quarter of the previous fiscal.

Shares of the PSU (public sector undertaking) company traded flat in the afternoon session and closed 0.37% higher at 297.3 per share on NSE.