BHEL enters into strategic partnership with HIMA Middle East FZE for railway signalling business

Bharat Heavy Electricals announced on Tuesday it has entered into a strategic partnership agreement for the railway signalling business with HIMA Middle East FZE, Dubai. Shares of the company closed 1.53% higher.

HIMA, which is a wholly-owned subsidiary of HIMA Paul Hildebrandt GmbH, Germany, is a leading solution provider for safety-related automation in the railways and process industries.

BHEL said that it has been supplying locomotives, electrics for EMU/MEMU, propulsion systems, traction motors, traction alternators, traction transformers, etc. to the Indian Railways, and the partnership with HIMA will further enhance the company’s offerings to the railways.

During the third quarter, BHEL announced a 7% year-on-year (YoY) rise in its sales at ₹5,273 crore. Revenue from operations rose 5% YoY to ₹5,504 crore during the quarter. Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined by 83% YoY to ₹41 crore during the quarter. BHEL posted a net loss of ₹163 crore in Q3FY24 as compared to a net profit of ₹31 crore in the same period of the previous fiscal.

The company’s order inflow rose to ₹36,048 crore up to the third quarter, a growth of 137% on a YoY basis. BHEL attributed the robust order booking to expansion in core sectors of the economy, along with demand for defence products. The firm’s order book outstanding as of December 31, 2023, stood at ₹1.08 lakh crore.

During the quarter the company received orders for the supply of a 310 mega volt amp (MVA) generator transformer (GT) for a thermal power station and a 28.5 MVA GT for a hydroelectric plant.

Apart from this, the company also received various orders for spares, services, and maintenance from a range of customers during the quarter, it said.

Shares of the company have gained nearly 42% since the beginning of the year. The stock has risen over 244% in the last one year.