BHEL shares soar on Rs 3,500 crore order from Adani Power

BHEL shares have rallied 42 percent since the start of the year.

Shares of Bharat Heavy Electricals Limited soared to clock double-digit gains in early trade on June 6, a day after the company announced a major order of over Rs 3,500 crore from Adani Power.

At about 10:00 am, shares of BHEL were trading higher by 13 percent, after having rallied 42 percent since the start of the year.

The order is to set up a 2x800 MW thermal power plant (TPP) in Raipur, Chhattisgarh, and ass per the contract, BHEL will supply equipments such as boilers, turbines, generators and related auxiliaries, and also oversee the commissioning of the power project utilizing 'supercritical technology.'

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The boilers and turbine generators will be manufactured at company's Trichy and Haridwar plants, respectively, BHEL said. The state-owned company said the order stipulates supply of unit-1 within 35 months and unit-2 within 41 months.

BHEL has also received an order from Mirzapur Thermal Energy (UP) Private Ltd to construct a 2x800 MW thermal power project at Mirzapur Phase I, in Uttar Pradesh. This contract is worth over Rs 3,500 crore.

In the fiscal fourth quarter, the company reported a 26 percent decline in net profit year-on-year to Rs 489.6 crore compared to Rs 658 crore in the same quarter of the previous year. Despite this decline in profit, the company's revenue from operations saw a slight increase of 0.4 percent, reaching Rs 8,260.3 crore, up from Rs 8,227 crore in the corresponding period of the previous fiscal year.