Getting to know you--->Bharat Heavy Electricals (BHEL) & ICICI Group.
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Bharat Heavy Electrical (BHEL)
BHARAT HEAVY ELECTRICALS LIMITED + $ *
Industry Group: (ENGINEERING)...............(GOVERNMENT)
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Summary
Address..........
BHEL House, Siri Fort, New Delhi - 110 049
E-Mail...........
bhel@bhel.ernet.in
Web Site.........
bhel.com
Telephone: (011) 649 3031
Fax : (011) 649 3021
Executives..........
K. G. Ramachandran (Chmn. & M.D.)
SEC: A. K. Chakraborty
AUD: Shiromany Tyagi & Company
Transfer Agent......
Karvy Consultants, Business Park, 25, Najafgarh Road, New Delhi - 15
Summary Info......
Year of incorporation : 1964
BSE code : 103
Reuters code : BHEL.BO
Face value : 10
Price : 281
% Change in 1-month : 22.2
% Change in 12-month : -22.6
P/E ratio : 9.6
P/CF ratio : 8.2
Dividend yield (%) : 0.89
Market capitalisation : 68,778
Weightage in market : 1.68
Aprx. daily trading volume : 345.2
Market Lot : 100
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Profile
BHEL is the largest player in the Indian engineering sector. It has 12 manufacturing facilities across the country manufacturing transformers, traction motors, locomotives, turbines, boilers and boiler auxillaries, wind mills, compressors and defence equipment. BHEL has two main divisions: power and industry. The industry division is divided into transmission, transportation, defence and other industry (steel, cement) segments. It has been identified as one of the 'Navratnas' for disinvestment. Currently, BHEL has an order backlog of Rs 100 bn (one and half years), of which almost two-thirds is from the power segment. Moreover, the company is well positioned to bag the NTPC-Sinhadri (1,000 MW) and NTPC-Talcher (2,000 MW) projects. Orders inflow in FY98 amounted close to Rs 59 bn. The compnay's power division contributed Rs 34 bn towards turnover (53% of revenues). During the year, the company added 17 sets 1,914 MW to the country's installed power generating capacity. With this it now accounts for 56,318 MW, which is 65% of the country's power generating capacity. The company's industry division with turnover of Rs 31 bn was affected by the industrial slowdown, and negative growth in the capital goods sector. BHEL is now facing increasing competition from global majors like ABB, GE, and Siemens. It has entered into JVs with Siemens and GE to tap technology from these companies.
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Shareholding
Indian promoters : 68.0 %
Foreign collaborators :
Indian inst/Mut Fund : 13.0 %
FII's : 11.0 %
Public/Free float : 8.0 %
No. of shareholders :
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Equity Share Data
No. of Months 12 12 12
Year Ending 31/03/96 31/03/97 31/03/98
High Rs 125 328 463
Low Rs 75 134 270
Sales per share Rs 209.5 240.0 271.4
Earnings per share Rs 14.3 18.7 29.1
Cash flow per share Rs 18.3 23.1 34.2
Dividends per share Rs 2.00 2.00 2.50
Dividend yield % 1.6 0.6 0.5
Book value per share Rs 60.8 78.6 106.0
Shares outstanding (eoy) mn 244.76 244.76 244.76
Bonus/Rights/Conversions - - -
Price/Sales ratio x 0.6 1.4 1.7
P/E ratio x 8.7 17.5 15.9
P/CF ratio x 6.8 14.2 13.5
Price/Book value x 2.1 4.2 4.4
Dividend payout % 14.0 10.7 8.6
Mkt Cap Rs mn 30,595 80,281 113,324
No. of employees 000 68 65 63
Total wages & salary Rs mn 10,366 8,739 9,525
Sales/employee Rs Th 759.8 902.8 1,062.7
Wages/employee Rs Th 153.6 134.3 152.4
Net profit/employee Rs Th 51.9 70.4 114.1
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Income Data
No. of Months 12 12 12
Year Ending 31/03/96 31/03/97 31/03/98
Gross sales Rs mn 51,289 58,736 66,420
Other income Rs mn 5,099 3,248 4,298
Total revenues Rs mn 56,388 61,984 70,718
Gross profit Rs mn 7,920 11,315 12,056
Depreciation Rs mn 968 1,080 1,242
Interest Rs mn 1,129 1,591 597
Profit before tax Rs mn 5,823 8,644 10,217
Tax Rs mn 2,321 4,061 3,083
Profit after tax Rs mn 3,502 4,583 7,134
Gross profit margin % 15.4 19.3 18.2
Effective tax rate % 39.9 47.0 30.2
Net profit margin % 6.8 7.8 10.7
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Balance Sheet Data
No. of Months 12 12 12
Year Ending 31/03/96 31/03/97 31/03/98
Current assets Rs mn 57,098 61,220 60,282
Current liabilities Rs mn 42,125 42,543 40,897
Net working cap to sales % 29.2 31.8 29.2
Current ratio x 1.4 1.4 1.5
Inventory turnover ratio Days 129 117 94
Debtors turnover ratio Days 211 201 172
Net fixed assets Rs mn 6,854 8,200 10,220
Share capital Rs mn 2,448 2,448 2,448
"Free" reserves Rs mn 11,826 15,952 22,555
Net worth Rs mn 14,885 19,248 25,950
Long term debt Rs mn 5,182 3,126 1,109
Total assets Rs mn 67,323 70,771 70,743
Interest coverage x 6.2 6.4 18.1
Debt to equity ratio x 0.3 0.2 0.0
Sales to assets ratio x 0.8 0.8 0.9
Return on assets % 5.2 6.5 10.1
Return on equity % 23.5 23.8 27.5
Return on capital % 23.1 27.6 28.6
Exports (fob) Rs mn 974 1,585 1,666
Imports (cif) Rs mn 10,281 10,104 8,899
Exports to sales % 1.9 2.7 2.5
Imports to sales % 20.0 17.2 13.4
Fx inflow Rs mn 1,235 2,026 2,976
Fx outflow Rs mn 10,996 10,874 9,495
Net fx Rs mn -9,761 -8,848 -6,519
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Half Yearly Results
No. of Months 6 6
Year Ending 30/09/97 30/09/98
Sales Rs mn 23,052 23,671
Other income Rs mn 1,227 2,091
Turnover Rs mn 24,279 25,762
Gross profit Rs mn 2,721 2,922
Depreciation Rs mn 584 704
Interest Rs mn 274 115
Profit before tax Rs mn 1,863 2,103
Tax Rs mn 689 778
Profit after tax Rs mn 1,174 1,325
Gross profit margin % 11.8 12.3
Effective tax rate % 37.0 37.0
Net profit margin % 5.1 5.6
Expense Rs mn 21,558 22,840
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Raw Materials
RAW MATERIALS CONSUMED FY98
Item Rs mn % To R.M.C % To Sales
FERROUS MATERIALS 5,993.3 22.9 9.0
NON FERROUS MATERIALS 708.3 2.7 1.1
INSULATION MATERIAL 743.2 2.8 1.1
COMPONENTS 17,918.8 68.6 27.0
OTHERS 767.9 2.9 1.2
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Capacity Data
CAPACITY DATA FY98
Item Installed Production Util. %
SWITCHGEARS NOS 2,640.0 2,509.0 95.0
POWER GENERATION SETS THMW 7.0 1.6 22.9
ELECTRICAL MACHINES NOS 650.0 763.0 117.4
POWER TRANSFORMERS NOS 130.0 158.0 121.5
BOILERS & AUXILIARIES THTPA 165.0 122.7 74.4
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Fx Transactions
Fx Transactions FY98
Exports (fob) : Rs mn 1,666
Imports (cif) : Rs mn 8,899
Fx inflow : Rs mn 2,976
Fx outflow : Rs mn 9,495
Net fx : Rs mn -6,519
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