Bharat Heavy Electricals Ltd
NSE:BHEL
Bharat Heavy Electricals Ltd
In the bustling industrial heart of India, Bharat Heavy Electricals Ltd. (BHEL) stands as a monumental cornerstone of the nation's engineering prowess. Established in 1964, BHEL emerged from the governmental vision of harnessing homegrown talent and resources to power the country's burgeoning infrastructure needs. As one of India's largest engineering and manufacturing enterprises in the energy and infrastructure sectors, BHEL has spread its roots far and wide, underpinning the development of power plants, transportation systems, renewable energy projects, and industrial facilities. The company has mastered the art of producing a plethora of heavy electrical equipment, including turbines, generators, transformers, and switchgears, furnishing its expertise to both domestic and international markets.
The lifeblood of BHEL’s financial sustenance flows predominantly from its comprehensive suite of services that complements its manufacturing might. This includes engineering, construction, testing, commissioning, and servicing of products and systems. BHEL crafts a robust revenue stream by engaging in large turnkey projects, supplying its technology solutions to utilities, industries, and transportation sectors. By also venturing into after-sales and maintenance services, BHEL ensures a continued engagement with its clientele post-installation, fostering long-term relationships and recurrent revenue. With a legacy of technological innovation and a strategy aligned to the nation's infrastructural upliftment, BHEL not only creates profit margins but also indelibly shapes the energy landscape of India.
In the bustling industrial heart of India, Bharat Heavy Electricals Ltd. (BHEL) stands as a monumental cornerstone of the nation's engineering prowess. Established in 1964, BHEL emerged from the governmental vision of harnessing homegrown talent and resources to power the country's burgeoning infrastructure needs. As one of India's largest engineering and manufacturing enterprises in the energy and infrastructure sectors, BHEL has spread its roots far and wide, underpinning the development of power plants, transportation systems, renewable energy projects, and industrial facilities. The company has mastered the art of producing a plethora of heavy electrical equipment, including turbines, generators, transformers, and switchgears, furnishing its expertise to both domestic and international markets.
The lifeblood of BHEL’s financial sustenance flows predominantly from its comprehensive suite of services that complements its manufacturing might. This includes engineering, construction, testing, commissioning, and servicing of products and systems. BHEL crafts a robust revenue stream by engaging in large turnkey projects, supplying its technology solutions to utilities, industries, and transportation sectors. By also venturing into after-sales and maintenance services, BHEL ensures a continued engagement with its clientele post-installation, fostering long-term relationships and recurrent revenue. With a legacy of technological innovation and a strategy aligned to the nation's infrastructural upliftment, BHEL not only creates profit margins but also indelibly shapes the energy landscape of India.
Order Book: BHEL reported its highest ever order book at approximately INR 78,000 crores for FY '24, with major new orders in both power and industry sectors.
Revenue & Profit: FY '24 revenue rose 2% to INR 23,893 crores and profit after tax was INR 260 crores.
Order Pipeline: Management expects about 10 GW of new power project tenders in FY '25, with similar annual volumes projected through 2032.
Working Capital: High trade receivables (around INR 8,000 crores) and contract assets (around INR 26,700 crores) have put pressure on cash flows, but management expects improvement as project milestones are executed.
Margins: Gross margin has declined for several years but management expects a turnaround, citing better payment terms and improved execution.
Diversification: Continued strategic focus on expanding industrial, defense, transmission, and transportation segments, aiming for a 50:50 revenue split between power and industry.
Execution & Vendor Base: BHEL is actively working to recruit and re-engage vendors to support timely execution of its large order book.
