BHEL Q1 sales seen up 23% at Rs 3,990 cr

By CNBC-TV18s Research Analyst, Niraj Shah

BHEL is to announce its Q1FY09 numbers. According to CNBC-TV18 esimates, the company is likely to post growth of 22.5% in its Q1 net profit of Rs 354 crore as against Rs 289 crore YoY.

Sales is seen going up 23% at Rs 3,990 crore versus Rs 3,234 crore and operating profit margin is likely to improve at 9.80% from 9.60%.
 
Order book

• Bagged orders worth more than Rs 10000 cr, including key order of 500 MW at Korba West
• Also bagged order for 2 units of 500 MW each at Marwa thermal power project worth Rs 3300 cr
• Order book as of March 2008 stood at Rs 85200 cr
• Order backlog represents a book-to-bill ratio of 4x FY08 revenue

Acquisition

• Acquired Bharat Heavy Plate and Vessels (BHPV)
• BHPV to start manufacturing of 500tons/month of pressure parts from June 2008
• BHPV increases BHEL's overall execution capacity by  almost 5% during FY09

Going Ahead

• Majority of orders (72GW) for the XIth Plan already placed
• Order intake may stagnate as order intake in FY09 is contingent on XIIth Plan projects taking off

Others

• Enters into annual contracts for direct steel procurement
• Component imports are on fixed price basis, thus insulating against commodity price increases

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