BHEL FY24 financial performance

BHEL’s Impressive Performance in FY24: A Deep Dive into Financials, Market Trends, and Future Prospects

Bharat Heavy Electricals Limited (BHEL), a prominent player in India’s power sector, has demonstrated a robust performance in its financial results for the fiscal year 2024 (FY24). With impressive quarterly results, strategic new orders, and substantial shareholder returns, BHEL continues to be a key player in India’s infrastructure and energy sectors. This blog delves into BHEL’s recent financial performance, stock market trends, major developments, and future outlook.

Quarterly and Annual Results Overview

Q4FY24 Performance

For the quarter ending March 31, 2024 (Q4FY24), BHEL reported a positive set of numbers that reflect the company’s solid performance and resilience in the face of evolving market dynamics. The company’s stock has seen a notable uptick, driven by strong financial results and strategic developments.

Annual FY24 Performance

The full-year performance for FY24 has been equally impressive. BHEL has managed to maintain a healthy financial position, characterized by a substantial increase in stock value and a consistent dividend payout, which underscores its commitment to delivering value to shareholders.

Stock Market Performance

Recent Stock Movements

On Monday, BHEL’s shares gained 3.62% to ₹304.90 per share from the previous closing of ₹294.25. During the trading session, the stock reached an intraday high of ₹306.30 and an intraday low of ₹289.20. This price movement is significant, especially considering the stock’s 52-week high of ₹335.40 and its 52-week low of ₹94.11.

Trading Volume and Investor Sentiment

The trading volume for BHEL shares saw a notable increase, spiking by more than 1.08 times on the Bombay Stock Exchange (BSE). This surge indicates heightened investor interest and confidence in BHEL’s prospects.

Dividend Announcement

Record Date and Dividend Details

The Board of Directors of BHEL has declared Friday, August 9, 2024, as the “Record Date” to determine the eligibility of shareholders for the final dividend of ₹0.25 per share, which represents a 12.5% dividend on the paid-up equity share capital for the fiscal year 2023-24.

Impact on Major Shareholders

The President of India, who holds a 63.17% stake in BHEL, will receive a dividend amounting to ₹54,99,12,600 (2,19,96,50,402 shares x ₹0.25 per share). This substantial payout reflects the significant ownership and influence of the government in the company.

Major Orders Secured

Domestic Orders Overview

BHEL has recently secured two major domestic orders, each exceeding ₹7,000 crore (excluding GST). These orders are pivotal in reinforcing BHEL’s position in the power sector.

1. Mirzapur Thermal Power Project: The order from Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power Limited, involves the supply of equipment such as boilers, turbines, and generators for a 2×800 MW thermal power project with Supercritical Technology at Mirzapur Phase I, Uttar Pradesh. The manufacturing of boilers will be undertaken at BHEL’s Trichy plant, while turbine generators will be produced at the Haridwar facility. The delivery schedule is staggered, with Unit-1 set to arrive in 35 months and Unit-2 in 41 months.
2. Raipur Thermal Power Project: Another significant order from Adani Power Limited pertains to a similar 2×800 MW thermal power plant in Raipur, Chhattisgarh. The project includes the supply and commissioning of similar equipment, with manufacturing split between the Trichy and Haridwar plants. The staggered delivery schedule mirrors that of the Mirzapur project.

Company Overview

About BHEL

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. The company excels in the design, engineering, and manufacturing of a wide range of power generation equipment.

BHEL FY24 financial performance

BHEL’s contributions have been instrumental in supporting India’s economic growth and infrastructure development.

Market Capitalization and Shareholding

As of June 2024, BHEL has a market capitalization exceeding ₹1,00,000 crore. The President of India holds a 63.17% stake, while the Life Insurance Corporation of India (LIC) owns 7.33%. Foreign Institutional Investors (FIIs) have increased their stake to 9.10% in June 2024, up from 8.76% in March 2024.

Financial Highlights

Order Book and Dividend Payout

BHEL’s current order book stands at ₹78,000 crore, reflecting a strong pipeline of projects. The company has consistently maintained a healthy dividend payout ratio of 30.4%, demonstrating its commitment to rewarding shareholders.

Stock Performance

From a 52-week low of ₹94.11, BHEL’s stock has achieved a remarkable multibagger return of over 200%, reaching ₹304.90 per share. This performance underscores the company’s significant growth and value creation for investors.

Market Trends and Future Outlook

Current Market Trends

BHEL’s recent performance reflects broader trends in the power and infrastructure sectors. The company’s strategic order wins and strong financial performance are indicative of a favorable market environment for power sector investments.

Future Prospects

Looking ahead, BHEL is well-positioned to capitalize on emerging opportunities in the power sector. The company’s robust order book, strategic domestic orders, and consistent dividend payouts suggest a positive outlook. Continued investment in infrastructure and power generation projects will likely drive further growth and value creation for BHEL.

Conclusion

Bharat Heavy Electricals Limited (BHEL) has demonstrated a commendable performance in FY24, characterized by impressive financial results, significant new orders, and strong stock market performance. The company’s strategic initiatives and robust order book underscore its position as a key player in India’s power sector.As BHEL continues to leverage its expertise and capabilities, it is well-positioned to drive future growth and deliver value to its shareholders.

The positive financial outcomes, combined with a healthy dividend payout and substantial new orders, highlight BHEL’s strength and resilience. Looking forward, BHEL’s continued focus on strategic investments and market opportunities will likely sustain its growth trajectory and reinforce its role in powering India’s infrastructure and economic development.

FAQs:

Q1: What is the significance of BHEL’s recent stock performance?

A1: BHEL’s recent stock performance highlights increased investor confidence, driven by positive quarterly results, substantial new orders, and a healthy dividend payout. The stock’s rise reflects the company’s strong financial health and growth potential.

Q2: When is the record date for BHEL’s dividend payout?

A2: The record date for BHEL’s dividend payout is Friday, August 9, 2024. Shareholders on record as of this date will be eligible to receive the final dividend of ₹0.25 per share.

Q3: What are the major orders recently secured by BHEL?

A3: BHEL has secured two major domestic orders from Adani Power Limited, each exceeding ₹7,000 crore. These orders involve supplying equipment and supervising the erection and commissioning of 2×800 MW thermal power projects in Uttar Pradesh and Chhattisgarh.

Q4: What is the current market capitalization of BHEL?

A4: As of June 2024, BHEL’s market capitalization exceeds ₹1,00,000 crore, reflecting its significant market presence and value.

Q5: How has BHEL’s stock performed over the past year?

A5: Over the past year, BHEL’s stock has achieved a multibagger return of over 200%, rising from a 52-week low of ₹94.11 to ₹304.90 per share.

BHEL FY24 financial performance

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