BHELNSEQ4FY2224 May 2022

Bharat Heavy Electricals Limited

5,797words
81turns
7analyst exchanges
2executives
Management on call
Subodh Gupta
Director, Finance
U S Matharu
Director, Power, and Additional Charge of Director (HR)
Key numbers — 40 extracted
rs,
n coal. While, this is likely to result in substantial opportunities in the Hydro and Nuclear sectors, at the same time, in view of India’s huge coal reserves and lack of 011 and gas reserves, coal is e
7,700 MW
n Coal. We are already witnessing a rebound in the thermal sector with a visible pipeline of over 7,700 MW of coal-based power plants. Your company is capitalizing on these emerging opportunities with a tw
700 MW
, the company has received the largest ever order for EPC of Turbine Island package for 6 units of 700 MWe Pressurized Heavy Water Reactors from NPCIL. In addition to this, orders for supply of Reactor H
Rs. 23,693 Crore
ts entry into domestic semi high-speed mobility segment. In FY 21-22, BHEL has booked orders worth Rs. 23,693 Crores. With this, the total order book as on 31st March 2022 stands at Rs. 1,02,542 Crores out of which
Rs. 1,02,542 Crore
ed orders worth Rs. 23,693 Crores. With this, the total order book as on 31st March 2022 stands at Rs. 1,02,542 Crores out of which power sector is Rs. 85,664 Crores, industry sector is Rs. 11,836 Crores, and export
Rs. 85,664 Crore
total order book as on 31st March 2022 stands at Rs. 1,02,542 Crores out of which power sector is Rs. 85,664 Crores, industry sector is Rs. 11,836 Crores, and export projects account for Rs. 5,042 Crores. During
Rs. 11,836 Crore
stands at Rs. 1,02,542 Crores out of which power sector is Rs. 85,664 Crores, industry sector is Rs. 11,836 Crores, and export projects account for Rs. 5,042 Crores. During the year, the Power segment has booked
Rs. 5,042 Crore
ector is Rs. 85,664 Crores, industry sector is Rs. 11,836 Crores, and export projects account for Rs. 5,042 Crores. During the year, the Power segment has booked orders worth Rs 17,931 Crores. Major orders receiv
Rs 17,931 Crore
projects account for Rs. 5,042 Crores. During the year, the Power segment has booked orders worth Rs 17,931 Crores. Major orders received for Flue Gas in the power segment include nuclear orders mentioned earl
Rs 5,660 Crore
r orders mentioned earlier, and orders Desulphurization Packages, amongst others. Orders worth Rs 5,660 Crores were booked by the Industry segment during the year. Prominent orders during the year include sup
6,000 MW
s were achieved in project execution during the year including successful commissioning of 800 kV, 6,000 MW UHVDC link between the Western Region Grid and the Southern Region Gnd. During the year, BHEL h
4,119 MW
egion Grid and the Southern Region Gnd. During the year, BHEL has commissioned and synchronized 4,119 MW of power plants in the utility, solar and captive segments and an additional 1,460 MW of Steam Gen
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Guidance — 16 items
Dr. Nalin Shinghal
opening
“Your company continues its focus on speeding up project execution, improving service & quality standards, reducing material cost as well as indigenous technology development.”
Dr. Nalin Shinghal
opening
“an Important milestones were achieved in project execution during the year including successful commissioning of 800 kV, 6,000 MW UHVDC link between the Western Region Grid and the Southern Region Gnd.”
Dr. Nalin Shinghal
qa
“Yes, we should expect it to pick up because at the moment the state and the private sector ordering has not yet happened and there are deadlines there.”
Dr. Nalin Shinghal
qa
“But are you seeing the signs of, you know, the ordering picking up material in a sense, can we expect around 20-30 Gigawatt of FGD ordering in FY 23?”
Dr. Nalin Shinghal
qa
“Out of that, approximately 110 Gigawatt, that is 1,10,000 Megawatt of the sets have already been finalized and we have a market share of 30%, but going forward, we might feel a dampener there because now the other tender in the market, which is, or let's say inquiry from the SEBs and NTPC and likes of NTPC.”
Renuka Gera
qa
“Anything else that you expect coming here?”
Dr. Nalin Shinghal
qa
“So, going forward with our diversification initiative, we expect that to deliver results.”
Rahul Gajare
qa
“231 Crores for the next year, but if you're looking at specific areas, then we are already looking at for ISRO for tankages.”
Dr. Nalin Shinghal
qa
“And, if you're looking at the long term, the major areas we are already, taking up CapEx for the ISRO tankages, which will be almost Rs.”
Dr. Nalin Shinghal
qa
“And in addition to that, there will be substantial CapEx required in the coal gasification side.”
Risks & concerns — 6 flagged
Overall, the company achieved an EBIDTA of more than Rs 1,100 Crores despite the significant pressure on margins due to sharp spike in metal prices and increase in other material and fuel costs.
— Dr. Nalin Shinghal
Basically, that includes the impact of refund, as CMD sir said in the opening remarks.
— Subodh Gupta
Actually, what CMD is telling the impact of material cost itself is very high.
— Subodh Gupta
So that is really one added challenge and risk for the company.
— Subodh Gupta
So, essentially to sum it up, that is a major concern area and we are trying to mitigate that through engineering efforts, as well as procurement efforts from both sides.
— Rahul Gajare
For example, we had difficult payment terms in Patratu and some FGD projects also but for new tenders of NTPC like Talcher, payments terms have been amended in tender documents.
— Abhineet Anand
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Q&A — 7 exchanges
Q
Good afternoon Sir. Congratulations! My question is why the other expenses are negative for the quarter? What was the one-off?
Subodh Gupta
The other expenses are negative because of the provision effect, the provisions of around Rs. (840) Crores. Do you want the breakup for other expenses? Yes, sir. Can you give the breakup? Yes. For Q4, total other expenses are Rs. (385) Crores with the breakup of Rs. 423 Crores of other expenses of manufacturing, administrative, selling and distribution expenses. Provisions are Rs. (842) Crores, power and fuel cost is Rs. 125 Crores. And there is ERV gain of Rs. 91 Crores. My second question is about FGD offerings. Are you expecting FGD offerings to pick up in FY 23 Yes, we should expect it to
Q
Can you hear me?
Dr. Nalin Shinghal
Yes, please. Go on. Thank you so much. So, my first question is, are you seeing any, increase in talks towards nuclear power plant, any prospective orders that you foresee in next couple of years? recently formed or enter new product lines? Okay. Anything else that you expect coming here? Not immediately, but yes in the future, I think nuclear will continue to play a very strong role. Okay, got it. My second question is on the industrial side, can you talk about any new JVs that you've So, in nuclear already, the fleet mode ordering has happened. And, as I mentioned we have already received th
Q
Which number?
Dr. Nalin Shinghal
Tax Refund numbers. Good Evening. Yes, we can hear you. Good evening. You're able to hear me. Right? Yes. I've got a couple of questions. I was not able to get the tax refund number that you said, can you please repeat that number? Tax Refund. We have PBT of Rs. 437 Crores and PAT of Rs. 410 Crores, the effect of Rs. 27 Crores expensed, you know, now book to income. So, because in the tribunal we won all this disputed tax cases prior to 2010-11. So that refund basically we could get the last year. So, the effect of that ultimately had to just see the gap between PBT and PAT. It's just Rs. 27 C
Atul Tiwari· Citi Research
Q
Hello, sir. I'm Atul Tiwari from Citi Research. Sir, just one question on this 7700 Megawatt pipeline that is emerging, could you break it across different projects and could you give your rough estimate of any timelines or status of readiness. Which are these 4000 mega projects, which are in advance stage of bidding? So, you said Talabira 3*800 MW and Adani 2*800 MW, both are under bidding, nght? Your voice was little shaky. Ok Sir. Thank You.
Dr. Nalin Shinghal
I'll request Director (Power) to respond to that. Good Afternoon. There are certain tenders where bidding is in advanced stage, that is close to some 4000 Megawatt. But we are expecting another tenders in next few months. But timeline for 4000 MW, as I said is already bidding is in advance stage. Another, 3000-4000 Megawatt, we are expecting that within one-year span, these tenders should be out. Actually, there one is Talabira - 3 units of 800 MW of Neyveli Lignite Corporation in Odisha and other one is in Bhandora- 2 units of 800 MW, these are where bidding is in advanced stages. And we have
Q
little late. Apologies. Just wanted to understand the Sir. Can you hear me? Sorry I joined the call a break-up of orderbook and receivables break-up, if you can help with that and order inflow. These 3 break-up please?
Nalin Shinghal
‘You want the order book breakup sector wise? Subodh Gupta Yes sir. Yes. The order receipt for FY 21-22 is Rs. 23,693 Crores. Power sector is Rs. 17,931 Crores. Industry sector is Rs. 5,660 Crores and international operations Rs. 102 Crores. So, that makes it Rs. 23,693 Crores. You want the break-up of outstanding order book as well? Yes Sir. Vidi ltd Bharat Heavy Electricals Limited 21 May, 2022 So, Power sector outstanding is Rs. 85,664 Crores, Industry is Rs. 11,836 Crores, International operation is Rs. 5042 Crores. So, combining together is Rs. 1,02,542 Crores. And if you would help with
Q
yourself. Thank you. Thank you, sir. is from Mr. Aditya please state your full name and organization name. Mr. Aditya, will you please un-mute yourself. Mr. Abhineet Anand, you can go ahead with your question, please un-mute. Thanks for the opportunity. I just wanted to know the terms of the contract for the new coal-based plants that are coming up. I remember a few years back, they had gone very unfavorable because you know, some of around 10% was to be given after the performance guarantee and all. Can you tell us what is the terms now in terms of payments? I'll request Director (Power) to a
Management
Q
Thank you. Thank you, ladies and gentlemen, for your patient hearing and in an interactive Q&A
Management
Speaking time
Dr. Nalin Shinghal
26
Mohit Kumar
12
Moderator
9
Subodh Gupta
7
Puneet Gulati
6
Rahul Gajare
5
Girish
5
Atul Tiwari
4
US Matharu
3
Mr. Mohit Kumar
1
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Opening remarks
Dr. Nalin Shinghal
Good evening everyone. I] am Nalin Shinghal - CMD, BHEL and I have with me . . Shri Subodh Gupta, Director, Finance; and Smt. Renuka Gera, Director, Industrial Systems & Products, with Addl. charge of Director (E, R&D), and other officers of the company Avery warm welcome to all of you. As we all know, the Power Sector is in the midst of a major energy transition and the country has made specific commitments in COP 26, in this context. At the same time, the focus on infrastructure development coupled with sector specific PLI (Production Linked Incentive) schemes as well as the government’s AatmaNirbhar Bharat initiative would result in continuous growth of power demand for which the country is looking towards a sustainable energy mix comprising of renewables coupled with hydro, nuclear, as well as clean coal. While, this is likely to result in substantial opportunities in the Hydro and Nuclear sectors, at the same time, in view of India’s huge coal reserves and lack of 011 and gas rese
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