BHEL corp presentation - Craft
Transcript of BHEL corp presentation - Craft
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BHEL CORPORATE PRESENTATIONJUNE 2020
This presentation is issued by Bharat Heavy Electricals Limited (the “Company” or “BHEL”) for
general information purposes only, without regard to specific objectives, suitability, financial
situations and needs of any particular person and does not constitute any recommendation or
form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact
of its distribution form the basis of, or be relied on in connection with, any contract or
commitment therefor. This presentation does not solicit any action based on the material
contained herein. Nothing in this presentation is intended by the Company to be construed as
legal, accounting or tax advice.
The presentation contains various financial data and business related data concerning the
Company. Unless otherwise specified, all such data is on a standalone basis, i.e., the Company.
Further, such data / figures may have been rounded off to the nearest integer.
Disclaimer
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Table of Contents
1. BHEL Overview 4
2. Financial Highlights 16
2
1. BHEL Overview
3
India’s Flagship Engineering & Manufacturing Company
Strong
Engineering &
Manufacturing
Base
• Integrated power plant equipment manufacturer with capability to deliver 20,000
MW of power plant equipment per annum
• Catering to all fuel types viz. Coal, Hydro, Nuclear, Gas & Solar
• Serving core sectors of industry viz. Power, Transmission, Industrials Systems and
Products, Transportation (Railway), Renewable Energy, Oil & Gas, and Defence &
Aerospace
Pan India
Presence
• 16 manufacturing units + 2 repair units + 8 service centres
• Infrastructure to deal with 150+ project sites (across India and abroad)
• About 33,500+ employees
• 1 Subsidiary + 3 active Joint Ventures
Global
Footprint
• References in 84 countries
• About 17,000 MW contracted ,11,000+ MW executed
• 190+ GW capacity installed globally
• 32,000+ AC machines supplied
• 730+ locos supplied to Indian Railways & Other Industries
• >50% of traction equipment in Locos & EMUs of Indian Railways supplied by BHEL
• 1.2+ GW Solar PV Portfolio
• 640,000+ MVA transmission equipment supplied
Rich
Experience
• R&D Expenditure (>2.5% of Turnover) – one of the highest in Indian engineering
field
• Filing patent / copyright applications regularly – total 4,849 filings
Innovation
4
upto 31st Mar’20
Pan India Presence
BHEL’s Operational Footprint in India
Note: Map not marked to scale.
5
Business Offices
1 Bangalore
2 Bhubaneswar
3 Chandigarh
4 Chennai
5 Guwahati
6 Ranchi
7 Jabalpur
8 Jaipur
9 Kolkata
10 Lucknow
11 Mumbai
12 New Delhi
13 Raipur
14 Secunderabad
15 Vadodara
Manufacturing Units
Bangalore
Bhopal
Goindwal
Haridwar
Hyderabad
Jagdishpur
Jhansi
Ranipet
Rudrapur
Tiruchirappalli
Thirumayam
Visakhapatnam
14 1 2
3
4
5 6
7
8
9
10
11
12 13
16
15
Regional Offices (Power Sector)
Noida (Northern Region)A
Kolkata (Eastern Region)B
Nagpur (Western Region)C
Subsidiary—Bhel Electrical Machines LTD.,
Kasaragod, Kerala
Chennai (Southern Region)D
Corporate Office New Delhi
Corporate R&D Hyderabad
4
6
5
11A
9
3
8 15
17
7
21
14
12 13
16
10 D
A
3
D12
8
15
G
10
H E5
9
BB
6
7
132
11
C
F
14
C
1
4
Single Source with Multiple Solutions for Infrastructure & Industrial Segments
6
Power
Execution of power
projects from concept to
commissioning
Products:
• Thermal: up to 1000
MW BTG ratings
• Emission control
equipment-FGD, ESP,
SCR
• Gas: gas turbines &
generators upto 297
MW
• Hydro: EM Package up
to 400 MW
• Nuclear: SG & TG sets
upto 700 MWe
Transmission
Wide range of transmission
systems & products
including EHV & UHV
Products:
• Power transformers
• Instrument transformers
• Shunt reactors
• Switchgear
• Capacitors
• Control & Protection
equipment
• HVDC terminals
• Flexible AC transmission
Transportation
Locos and wide range of
traction propulsion
equipment
Products:
• Electric locomotives up
to 6000 HP, Diesel-
Electric locomotives up
to 1400 HP
• Electrics and Propulsion
equipment for EMUs/
Locos
Renewable Energy
EPC solutions for Solar PV
Power Plants, with and
without Battery Energy
Storage System
Ground mounted, Roof
top, canal top and floating
solar power plants
Products:
• Solar cells and modules
• Power Control Unit
(PCU) for solar PV
plants
Single Source with Multiple Solutions for Infrastructure & Industrial Segments
7
Energy Storage
Solutions
Focus on electric mobility,
battery storage & railway
track electrification
Products:
• Energy Storage, Power
Conditioning & Energy
Management Systems
• Complete Containerized
Solutions
• Electric Vehicle Chargers
• Electric Power Train
• Lithium Ion Battery
Packs
• EPC solutions for railway
electrification
Defence & Aerospace
Strategic equipment for
Indian defence forces for
over 20 years
Products:
• Super Rapid Gun Mount
• IPMS for Naval ships
• Turret Casting For T72
Tanks
• Integrated Platform
Management System
For Naval Ships
• Compact Heat
Exchanger For LCA
• Space Grade Solar
Panel
• Space Grade Li-ion
Battery
Industrial Products
& Systems
Wide Range Of Industrial
Products
Products:
• Oil Rigs
• Well Head & X-mas
Tree Valves
• Fabricated Equipment
• Boiler Feed Pumps
• Compressors
• AC Alternators &
Motors
• Valves
Water
Turnkey solutions for
power plants, industries
and municipal segments
Products:
• Pre Treatment Plant
• Sea Water Reverse
Osmosis and
Demineralization Plant
• Effluent Treatment
Plant
• Sewage Treatment
Plant and Tertiary
Treatment Plant
• Zero Liquid Discharge
System
One of the ten “Maharatna” CPSEs
Listed on BSE on 12th October 1992
Listed on NSE on 03rd November 1994
Market Cap*:
INR 12,831 Cr
Share Price of face value Rs. 2
52 Wk High / Low:
INR 19.20/INR 75.50*
* are as on 26/06/2020 ( Source: www.bseindia.com)
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Shareholding Pattern (as on March 31, 2020)
President of India, 63.17%
Foreign holdings,
9.36%
Insurance Companies
10.91%
Financial Institutions & Banks, 1.28%
Mutual funds, 5.62%
Non institutions,
9.66%
BHEL is the undisputed leader amongst Indian power plant equipment manufacturers
BHEL’s Electric Utility
Installed Base in India(As on March 31, 2020)
Jammu and Kashmir
Himachal Pradesh
Uttarakhand
Punjab
Haryana
Delhi
RajasthanUttar Pradesh
Gujarat
Maharashtra
Goa Andhra Pradesh
Karnataka
Kerala
Tamil Nadu
Telangana
Orissa
Madhya PradeshChhatisgarh
West Bengal
Bihar
Sikkim
Jharkhand
Tripura
Meghalaya
Mizoram
Manipur
NagalandAssam
Arunachal Pradesh
Hydro Gas and CCP Diesel Coal NuclearLegends
Coal, Gas, Nuclear, Diesel and Hydro Projects Contribution in total
installed capacity*(As on March 31, 2020)
Contribution in thermal
power generation(During FY 2019-20)
9 $ excluding Industrial sets in India and overseas installations; values rounded off
* Coal, Gas & CCP, Diesel, Nuclear & Hydro
BHEL53%
Others47%
BHEL57%
Others43 %
MW
Coal 1,28,315
Gas and
CCP7,622
Diesel 199
Nuclear 3,340
Hydro 20,997
Total 1,60,474$
Project Execution PerformanceCommissioning/Synchronization (MW)
15,059
8,570
4,1495,904
4,786
FY16 FY17 FY18 FY19 FY20
References in 84 countries across all six continents of the world and Offices in 4 countries
Global Presence
10
First large turnkey project
export by Indian co. – Libya
(1977)
Consistent Performance –
~17,000 MW contracted and
~11,000 MW executed
Presence in all segments
– Thermal
– Hydro
– Oil & Gas
– Solar
– Transmission
Executing 6 GW projects outside
India
− Executing the largest ever
export order of 2 x 660 MW
Maitree Super Thermal
Power Project, Bangladesh
Bagged 900 MW Arun-3
Hydroelectric, Nepal- largest
hydro project of Nepal
Bagged 40MW Rahughat
Hydro project, Nepal
Continuous focus on R&D
Building Indigenous Technology Capabilities
• Strong engineering and R&D base for in-house development of indigenous technologies
• Technology collaboration agreements with leading global manufacturing and engineering companies.
• Indigenous capabilities in thermal power plants upto 1000 MW, Nuclear sets upto 700 Mwe, Gas turbines upto 297 MW, Hydro turbines
upto 400 MW
• Focus on Clean Coal Technologies
• Currently developing India’s first Coal fired Advanced Ultra Super Critical (AUSC) plant technology along with NTPC and IGCAR
• Developing technology for coal to methanol production
• Emission control equipment – NOx, SOx and particulate control
• Development of advanced transportation systems including 3 phase AC EMU propulsion system, Regenerative Braking System for electric
locomotives, propulsion system for higher rating locomotives, & conversion of diesel to electric locomotives
• Transmission systems & products including higher rating Gas Insulated Substation up to 400kV; 765 & 1200 kV UHV AC Transformer &
Reactors
• Renewable energy technologies such as balance of systems components for solar power plants, higher efficiency solar cells
• Electric mobility solutions including indigenous propulsion systems for electric vehicles, charging infrastructure, among others
• Development of Energy Storage Systems including Grid Connected BESS (Lithium-ion, Flow battery & Advanced lead acid battery) ,
Battery packaging & battery management systems
• Development of IIOT solutions for Remote Monitoring and Diagnostics of power plants, Predictive maintenance and efficiency optimization
11
Board of Directors
Functional Directors Independent Directors Govt. Nominee Directors
Subodh Gupta
Director (Finance)
S. Balakrishnan
Director (Industrial
Systems & Products)
Manoj Varma
Director (Power)
Kamalesh Das
Director (Engineering,
Research &
Development)
Anil Kapoor
Director (Human
Resources)
Shashank Priya
AS&FA, Ministry of
Commerce & Industry
Amit Varadan
Joint Secretary
DHI, Ministry of Heavy
Industries & Public
Enterprises
Dr. Nalin Shinghal
Chairman & Managing
Director
Desh Deepak Goel
Ranjit Rae
Rajesh Sharma
Raj Kamal Bindal
Manish Kapoor
Board of Directors-structure
The composition of Board of Directors of BHEL has
an appropriate mix of Executive Directors represented
by Functional Directors including CMD, and Non-
executive Directors represented by Government
Nominees & Independent Directors, to maintain the
independence of the Board and to separate the Board
functions of management and control.
The total number of Directors sanctioned for BHEL
Board is 16 represented by 6 Functional Directors
(incl. CMD), 2 Govt. Nominee Directors and 8
Independent Directors.
As on 31st May 2019, there exist 3 vacancies of
Independent Directors (including one independent
women director) which is under consideration of DHI,
GoI.
Corporate Governance
13
Corporate Governance Compliances
Code of Business Conduct & Ethics for Board Members and
Senior Management Personnel – in place
Board level periodic reviews of compliance reports for all
laws applicable to BHEL
Vigil mechanism in place to report genuine concerns of
Directors & Employees
All the requisite Board level committees are functional in
BHEL with the composition in line with the requirements of
Companies Act, Listing Regulations & SEBI Guidelines
Code of Conduct in place for regulating & reporting trading
by Designated Persons & their Immediate Relatives and for
Fair Disclosure in compliance with SEBI guidelines on the
matter
Risk Management Committee in place to review the Risk
governance structure, risk assessment & management
frame work, guidelines, policies & processes for risk
assessment & management
Resolution of 100% Shareholders’ complaints at each
quarter end
Awards & recognition
14
Golden
Peacock
award for
Environment
management
2019
Dun &
Bradstreet
PSU Award-
Engg.
category
2019
9 National
Safety
Awards 2019-
highest
number by an
organisation.
Governance
Now PSU
award
In Research &
innovation
2020
Indian
Green
Energy
Award
2019
Governance
Now PSU
award
In HR
Excellence &
Reskilling of
Employees
2020
Governance
Now PSU
award
In Geo
strategic reach
2020
Golden
Peacock
National
Quality Award
2020
2. Financial Highlights
15
Financial Highlights
Turnover(Rs Crore)
EBITDA(1)
(Rs Crore)
Notes: (1) EBITDA = Earning before charging Interest cost, Tax, Depreciation & Amortization.
* FY16 onward data is based on IND-AS
Profit After Tax(Rs Crore)
16
25,09127,740 27,850 29,349
20,491
FY16 FY17 FY18 FY19 FY20
*
131
1,827
2,626 2,820
348
FY16 FY17 FY18 FY19 FY20
*
(710)
496
807
1,215
(1,473)
FY16 FY17 FY18 FY19 FY20
*
Order Book Receipts(Rs. Crore)
43,727
23,489
40,932
23,859 23,547
FY16 FY17 FY18 FY19 FY20
Financial Highlights
Total Equity(Rs Crore)
Note: (1) Working Capital calculated as Inventories + Trade Receivables – Trade Payables
* FY16 onward data is based on IND-AS,
^ Excluding Rs. 245 crore of net investment in Subsidiary & Joint Ventures
Capex (Rs Crore)
Dividend #(Rs Crore)
Working Capital(1)
(Rs Crore)
17
32,181 32,29432,601
31,400
29,181
FY16 FY17 FY18 FY19 FY20
*
311294
249272
333
FY16 FY17 FY18 FY19 FY20
^
98
387
668 696
FY16 FY17 FY18 FY19
# Dividend on accrual basis- interim dividend and proposed final dividend for the year
33,557 31,863 35,493 38242 36471
9,602 7,372 6,259
8113 8905
(9,488) (9,340) (11,066) (12,079) (9,900)
33,671 29,895 30,686
34,276 35476
FY16 FY17 FY18 FY19 FY20
Trade Receivables Inventories Trade Payables
*
* BHEL Board did not recommend Final Dividend for FY
2019-20 due to COVlD-19 & extraordinary circumstances
faced by the company. However an interim equity dividend
of 40% has been paid for 2019-20
Financial Performance (2019-20)
18
In Rs. crore
* Total may differ from sum of the parts due to rounding off
Parameters Q1 Q2 Q3 Q4 Total
Turnover 4410 6029 5458 4594 20491
PBT -344 165 226 -709 -662
PAT -216 119 159 -1534 -1473
Order Inflow 3892 7404 5948 6213 23457
Total Order
book1,08,443
Additional Information
19
JVs and Subsidiaries
Bharat Heavy Electricals Limited
Government of India (“GoI”) Others
Subsidiaries
BHEL Electrical
Machines Limited
Joint Ventures
BHEL GE Gas Turbine
Services Pvt. Ltd.
NTPC – BHEL Power Projects
Pvt. Ltd. (NBPPL)
Raichur Power
Corporation Limited
Dada Dhuniwale Khandwa
Power Limited
Power Plant Performance
Improvement Limited
51%
50%
50%(1)
50%
26%
50%(1)
63.17% 36.83%
Source: Company data.
Note: (1) One share less than 50%.20
Glossary
Term Description
AUSC Advanced Ultra Supercritical
CPSE Central Public Sector Enterprises
EHV Extra High Voltage
EM Electro-Mechanical
EMU Electric Multiple Unit
EPC Engineering, Procurement and Construction
BESS Battery Energy Storage Solutions
ESP Electrostatic Precipitator
FGD Flu Gas De-sulphurization
HVDC High Voltage Direct Current
IGCAR Indira Gandhi Centre for Atomic Research
IPMS Integrated Platform Management Systems
LCA Light Combat Aircraft
NTPC National Thermal Power Corporation
PCU Power Control Unit
PS Mkt Power Sector Marketing
SCR Selective Catalytic Reduction
SPV Solar Photovoltaic
UHV Ultra High Voltage
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