Rs 1,60,157 Crore Order Book: Power Company In Partnership With Hitachi Energy Signs Contract with Adani Energy Solutions Ltd

The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.72 per cent as of December 2024.

Bharat Heavy Electricals Limited (BHEL), in partnership with Hitachi Energy India Limited, has secured a significant contract with Rajasthan Part I Power Transmission Limited, a subsidiary of Adani Energy Solutions Limited, to design and execute a 6,000 MW, ±800 kV, bi-directional HVDC transmission link. This project aims to transmit renewable energy from Bhadla, Rajasthan, to Fatehpur, Uttar Pradesh, and is expected to be completed by 2029. This HVDC link will play a crucial role in India's goal of achieving 500 GW of renewable energy by 2030, ensuring grid stability and efficient power flow control, while also reinforcing BHEL's commitment to the 'Make in India' initiative.

This contract marks BHEL’s fourth UHVDC transmission project, building on their extensive experience with previous projects like the North-East Agra and Raigarh-Pugalur HVDC links, and their ongoing work on the Khavda-Nagpur HVDC link. For the Bhadla-Fatehpur project, BHEL will supply critical equipment from its Bhopal and Bengaluru plants, including Converter Transformers, Shunt Reactors, Filter Bank Capacitors, and Thyristor Valves. These components will facilitate the conversion of AC to DC power at Bhadla for transmission over 950 Kilometers, and the subsequent reconversion to AC at Fatehpur. Additionally, BHEL's Transmission Business Group will handle the design, supply, and installation of the 765 kV/400 kV power evacuation system and 400 kV AC substations.

BHEL's long-standing involvement in India's HVDC projects, since the technology's inception, underscores its leadership in the power generation and transmission sectors. With a proven track record in executing turnkey projects for EHV Substations, HVDC Converter Stations, and FACTS solutions, BHEL continues to contribute significantly to the development of India's power infrastructure, leveraging its established manufacturing facilities and expertise in HVDC technology up to 800 kV.

About the Company

Bharat Heavy Electricals Ltd (BHEL), a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering, and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth. BHEL Limited manufactures various power plant equipment.

Results: According to Quarterly Results, the net sales increased by 32 per cent to Rs 7,277 crore and net profit increased by 207 per cent to Rs 116.44 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the company reported net sales of Rs 19,346 crore and a net loss of Rs 19.64 crore in 9MFY25 while in its annual results, the company reported net sales of Rs 23,893 crore and a net profit of Rs 218.24 crore in FY24.

The company has a market cap of over Rs 75,000 crore. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.72 per cent as of December 2024. The company’s order book stands at Rs 1,60,157 crore. The company has been maintaining a healthy dividend payout of 27.8 per cent. Investors should keep an eye on this PSU stock.

Disclaimer: The article is for informational purposes only and not investment advice.