BHEL - Deutsche Bank, India Conference Highlights

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Capital goods
BHEL
􀂄 INR 600 bn order inflow guidance for FY11 hinges on the bulk order wins from NTPC.
Recent litigation could create a risk from this order inflow and pose a challenge in
achieving the guidance.
􀂄 While it is early days for company to give any guidance for FY12E, there could be a
possibility of tapering off of order inflow in the medium term.
􀂄 Company is working hard on achieving the revised commisioning targets. While Ministry
of power has set a c10 GW power capacity commissioning in FY11 and c12 GW in FY12,
BHEL has thus far done c4.6 GW in FY11E largely due to delays arising from the
developers or other players working on other areas of the project that are running behind
schedule etc.
􀂄 Commodity price rise may not be a big risk as company has a reasonable pass through
for the same.
􀂄 On the working capital front the company continues to have c110 days of receivables
and c100 days of inventory.
􀂄 In the other segments, the company is looking forward to the bidding for oil rigs for Oil
India and ONGC. In the railways segment though, the order deferrals continue.