The shares of Bharat Heavy Electricals (BHEL) surged over 3 percent on March 28 after the company announced that it has received a Letter of Intent (LoI) from the Chhattisgarh State Power Generation Company Limited (CSPGCL) for a project worth Rs 11,800 crore. The shares of the company were trading at around Rs 221 apiece.
In an exchange filing, BHEL announced that it has received the LOI for an engineering, procurement and construction (EPC) package of two 660 megawatt 'Supercritical' thermal power plants at Hasdeo Thermal Power Station, which is located in the Korba District of Chhattisgarh.
The said contract would include the supply of supercritical equipment including boiler, turbine, generator and other associated auxiliaries, along with erection, commissioning and other related civil works.
The commercial operations at the project, which has a broad consideration of approximately Rs 11,800 crore excluding taxes and duties, is set to begin within 60 months.
BHEL shares have now extended gains for the second consecutive session, rising over 5 percent since markets closed on March 26. The stock has risen nearly 23 percent in the past one month. However, the stock has declined over 21 percent in the last six months. It has so fallen over 11 percent in the last one year.
BHEL shares have however strongly recovered after hitting a 52-week low of Rs 176 apiece on March 3. The stock is significantly down from its 52-week high of Rs 335 per share.
Also read: BHEL wins Rs 7,500-crore order from Gujarat State Electricity Corporation
For the quarter which ended in December, BHEL's net profit surged by 170 percent year-on-year to Rs 124 crore. Its revenue meanwhile grew 32 percent to Rs 7,277 crore. BHEL saw a remarkable 167 percent increase in order inflow, while its order book surged 47 percent year-on-year to hit Rs 1.6 lakh crore in Q3 FY25.
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