Bharat Heavy Electricals Limited (BHEL) saw a large uptick in its share price, gaining nearly 5% in early trades following reports that the engineering and manufacturing enterprise secured the lowest bid for Neyveli Lignite Corporation’s (NLC) Odisha project.

What Happened: BHEL clinched a ₹19,422-crore contract from NLC for the Talabira project by outbidding L&T (Larsen & Toubro) for the prestigious project, according to multiple media reports.

The turnkey contract entails BHEL constructing three ultra-supercritical units, each with a capacity of 800 megawatts, for NLC India at Talabira, Odisha.

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Why It Matters: Speculation suggests that L&T refrained from bidding for the contract, and the order is unlikely in FY24. Moreover, there is no anticipation of any work in FY25 due to the project lacking assigned land.

In the second quarter of FY24, BHEL reported a consolidated net loss of ₹238.12 crore, a notable contrast from the ₹12.10 crore profit recorded in the previous fiscal year. The total income for the reporting period declined slightly to ₹5,305.38 crore.

Price Action: BHEL’s share price was up 2.97% at ₹199.30 in afternoon trade on Monday.

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