Shares of Bharat Heavy Electricals Limited (BHEL) surged, recording double-digit gains in early trade on June 6, following the announcement of a significant order exceeding Rs 3,500 crore from Adani Power.
At around 10:40 am, BHEL shares were trading 13 percent higher, having already rallied 42 percent since the beginning of the year.
The order involves the establishment of a 2×800 MW thermal power plant (TPP) in Raipur, Chhattisgarh. As per the contract, BHEL will provide equipment such as boilers, turbines, generators, and related auxiliaries, and will also oversee the commissioning of the power project using ‘supercritical technology.’
BHEL stated that the boilers and turbine generators for this project will be manufactured at its Trichy and Haridwar plants, respectively. The state-owned company noted that the order requires the supply of unit-1 within 35 months and unit-2 within 41 months.
In related news, BHEL also received an order from Mirzapur Thermal Energy (UP) Private Ltd to construct a 2×800 MW thermal power project at Mirzapur Phase I in Uttar Pradesh, valued at over Rs 3,500 crore.
Despite a 26 percent year-on-year decline in net profit for the fiscal fourth quarter, dropping to Rs 489.6 crore from Rs 658 crore in the same quarter of the previous year, BHEL’s revenue from operations slightly increased by 0.4 percent, reaching Rs 8,260.3 crore compared to Rs 8,227 crore in the corresponding period of the prior fiscal year.
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