Bhel gains after commissioning India's first phase shifting transformer

Bharat Heavy Electricals rose 4.05% to Rs 282.50 at 11:15 IST on BSE after the company said it successfully commissioned India's first phase shifting transformer in Telangana.

The announcement was made during trading hours today, 3 December 2014.

Meanwhile, the BSE Sensex was down 38.09 points, or 0.13%, to 28,405.92.

On BSE, so far 2.92 lakh shares were traded in the counter, compared with an average volume of 5.92 lakh shares in the past one quarter.

The stock hit a high of Rs 282.90 and a low of Rs 272.30 so far during the day. The stock hit a 52-week high of Rs 291.50 on 26 May 2014. The stock hit a 52-week low of Rs 145.75 on 14 February 2014.

The stock had outperformed the market over the past one month till 2 December 2014, rising 6.16% compared with 2.07% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.20% as against Sensex's 5.27% rise.

The large-cap company has an equity capital of Rs 489.52 crore. Face value per share is Rs 2.

Bharat Heavy Electricals (Bhel) said it successfully indigenously developed, manufactured and commissioned India's first Phase Shifting Transformer (PST) Kothagudem Thermal Power Station (KTPS) Stage-VI in Telangana.

Telangana State Power Generation Corporation (TSPGCL, erstwhile APGENCO) had placed an order on Bhel for the country's first PST, the company said in a statement.

A Flexible AC Transmission System (FACTS) device, the PST is a combination of a shunt and a series transformer. Significantly, with the commissioning of the above PST, the existing overloaded 220 kV lines shall be relieved and power can be pushed through the 400 kV transmission line, thus improving the transmission efficiency of both 400 kV and 220 kV lines, and also avoiding grid collapse in case of system instability. In fact, the remarkable benefits derived by transmission networks through deployment of PST, is an outstanding smart grid solution in true sense. This is a major development and has opened a new line of business for Bhel, the company said.

Last month, a foreign brokerage upgraded the Bhel stock to buy from sell. The foreign brokerage said that Bhel is now the top industrial pick from India citing better orders, earnings, underperformance, and under ownership by institutional investors as key reasons for the stock upgrade.

Bhel reported 72.6% fall in net profit to Rs 124.84 crore on 33.1% fall in total income to Rs 6340.14 crore in Q2 September 2014 over Q2 September 2013. Bhel has an outstanding order book position of about Rs 103700 crore as at 30 September 2014.

Bhel is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.

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