Rs 1,60,000 crore order book: Heavy electrical equipment company successfully commissions Unit-1 & 2 of 6X170 MW Punatsangchhu-II Hydroelectric Project (PHEP-II) in Bhutan

The stock is up by 16.66 per cent from its 52-week low of Rs 192 per share.

Bharat Heavy Electricals Limited (BHEL) has successfully commissioned the first two units of the 6x170 MW Punatsangchhu-II Hydroelectric Project (PHEP-II) in Bhutan. This significant achievement marks another milestone in the strong bilateral cooperation between India and Bhutan. PHEP-II, a greenfield hydro project located in the Wangdue district, is being developed as part of an agreement between the two governments.

The project incorporates Francis Turbines designed to operate at a record-breaking head of 241 meters in Bhutan. This innovative design will contribute to the project's overall efficiency and power generation capacity. Once all six units are commissioned, PHEP-II is expected to generate a substantial 4,357 gigawatt-hours of electricity annually, significantly boosting Bhutan's renewable energy production.

BHEL's scope of work in PHEP-II encompasses the complete electro-mechanical package, including the design, manufacturing, supply, installation, and commissioning of key components such as turbines, generators, control systems, and transformers. This comprehensive involvement demonstrates BHEL's expertise and capabilities in executing large-scale hydroelectric projects.

With the successful commissioning of these two units, BHEL's contribution to Bhutan's total installed hydropower capacity now stands at nearly 89 per cent. This underscores BHEL's crucial role in supporting Bhutan's renewable energy goals. Furthermore, BHEL is actively engaged in other significant hydroelectric projects in the region, including the 6x200 MW Punatsangchhu-I HEP in Bhutan and the 4x225 MW Arun-3 HEP in Nepal, solidifying its position as a leading player in the hydropower sector in South Asia.

About the Company

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.

Bharat Heavy Electricals Limited (BHEL) announced mixed sets of numbers in its Quarterly Results (Q2FY25) and half-yearly results (H1FY25). According to quarterly results, the net sales increased by 28.5 per cent to Rs 6,584.10 crore in Q2FY25 compared to Q2FY24. The company reported a net profit of Rs 89.53 crore in Q2FY25 compared to a net loss of Rs 74.96 crore in Q2FY24, an increase of 219.4 per cent. In its half-yearly results, the company reported net sales of Rs 12,069 crore and a net loss of Rs 136 crore in H2FY25 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 September 2024. Additionally, FIIs increased their stake to 9.48 per cent in September 2024 compared to 9.10 per cent in June 2024. Furthermore, the company’s order book stands at Rs 1,80,000 crore.

The company has been maintaining a healthy dividend payout of 27.8 per cent. The stock is up by 16.66 per cent from its 52-week low of Rs 192 per share. Investors should keep an eye on this PSU stock.

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