BHEL corp presentation

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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

1

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)

8

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


*

131

1,827

2,626 2,820

348


*

(710)

496

807

1,215

(1,473)


*

Order Book Receipts(Rs. Crore)

43,727

23,489

40,932

23,859 23,547


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


*

311294

249272

333


^

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


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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BHEL corp presentation

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