BHEL shares jump 10% on Rs 4,000 crore order win from Adani Power subsidiary

BHEL share price: Bharat Heavy Electricals Limited (BHEL) shares gained as much as 10 per cent to hit a high of Rs 110.90 on the BSE on Tuesday after the company said it had received a Rs 4,000 crore order from a wholly-owned subsidiary of Adani Power Limited.

The government-owned company has received the order from Mahan Energen Limited, formerly known as Essar Power MP Limited, a wholly owned subsidiary of Adani Power Limited, BHEL said in a filing to the stock exchanges on Monday.

BHEL new order details

The order pertains to the supply of equipment and other ancillary needs for a power project in Madhya Pradesh.

BHEL will supply the boiler, turbine, and generator, as well as control and instrumentation equipment. The contract will also see BHEL supervise the erection and commissioning of a 2x800 MW power project based on supercritical technology at Madhya Pradesh’s Bandhaura.

The boiler, turbine, and generator for the project will be manufactured at BHEL’s Trichy and Haridwar plants. The supply will take 31 months for Unit 1 and 35 months for Unit 2, the company informed bourses.

Shares of BHEL were trading 3.67 per cent higher at Rs 104.55 apiece on BSE at 1:34 PM. The stock continued to rally for the second straight session on Tuesday after closing 2.91 per cent higher at Rs 100.85 apiece on BSE on Monday.

Over the past month, BHEL’s shares have gone up more than 9 per cent. Over the past year-long period, the company’s shares have nearly doubled in value, registering a gain of 91 per cent.

In its latest quarterly results, BHEL reported a consolidated net loss of Rs 344 crore for the quarter ending on June 31, 2023, compared to Rs 188 crore in the same quarter a year ago.

Revenue for the PSU also dipped on a sequential basis from the previous quarter but saw a marginal increase in the year-on-year period. The company’s revenue grew 7.1 per cent to Rs 5,003.4 crore in the June quarter, compared to Rs 4,672 crore in the year-ago period.