BHEL logs over 17% rise in new orders in 2022-23

New Delhi: State-run engineering firm Bharat Heavy Electricals Ltd (BHEL) logged over 17 per cent growth in new orders bagged in 2022-23 to Rs 23,548 crore compared to the previous year due to its diversified business approach.

BHEL secured new orders worth Rs 20,078 crore in 2021-22, according to a company statement. "BHEL secured orders worth Rs 23,548 Crore (excluding taxes) during 2022-23 in its power, industry and export segments and the company ended the year with a total order book of over Rs 91,336 crore (excluding taxes)," it stated.

The latest outstanding order book has crossed Rs 1,00,000 crore (excluding taxes) with the finalisation of the prestigious Vande Bharat trainset order in April 2023, it explained.

The BHEL-TWL (BHEL-Titagarh Wagons Ltd.) consortium has been awarded an order valued at about Rs 23,000 crore (excluding taxes) for 80 Vande Bharat Trains in one of the biggest Railway tenders for manufacturing-cum-maintenance of Vande Bharat Trains.

This order will give further impetus to the company’s diversification drive, it pointed out.

As part of its diversification strategy, BHEL has also leveraged its Pressurised Fluidised Bed Gasification technology for coal gasification and has entered into MoUs (memorandum of understanding) with Coal India and NLC India for development of coal gasification projects.

During the fiscal year, the BHEL commissioned 1,580 MW of power-generating equipment, in addition to synchronising captive/solar projects of 298 MW.

With this, the company’s global installed power generating capacity has gone up to 195 GW.

Rignificant milestones during 2022-23 included the only EPC thermal power plant tender awarded in the country (2x660 MW NTPC Talcher) after a gap of more than 3 years and all-time high order booking in the spares and services as well as defence segment.

Major successes in industry segment business included the largest ever order in the defence business of 20 upgraded SRGMs - the main gun on Indian warships - from the Indian Navy and a two and a half times surge in orders for transformers at 35,700 MVA.

The share of the industry sector business segment in the yearly order booking rose to 40 per cent in 2022-23, which is the highest ever for the BHEL, and the sector registered a significant 90 per cent growth during the year. During the fiscal year, BHEL recorded revenue from operations of Rs 23,365 crore, up 10 per cent over the previous year.

The company logged Profit After Tax (PAT) of Rs 448 crore with continued focus on cost control and prudent resource management.

The BHEL’s strategic shift towards project-centric operations and focus on optimising project execution over the last four years has paid rich dividends.

The company’s construction tonnage in projects across the country has shot up by a massive 100 per cent 2022-23 as compared to 2019-20, showcasing the increase in pace and efficiency of project execution.

Liquidity has been maintained due to improved execution focus with realisation from current year billing going up from 59 per cent to 86 per cent over the past 4 years, it stated.