Bharat Heavy Electricals Ltd

- There is no specific guidance or mention of current or future fundraising through debt or equity in the provided transcript. - Dr. Nalin Shinghal explicitly declined to give any capex numbers or financial guidance at this stage (Page 17). - The discussions mostly revolve around operational focus, project execution, provisions, and new order opportunities rather than fundraising. - No direct references to any planned debt issuance or equity raising were made during the Q&A. - The company is focusing on improving turnover per employee, re-skilling, and strategic capex in new technology areas and JVs but without specifying funding sources.

- BHEL is formulating a capex strategy focusing on replacing old machines with degraded performance and tolerances, essential for future needs. - Capital expenditure includes investments in joint ventures (JVs) and new technology areas such as coal gasification. - Significant capex is underway in defense, for instance, upgrading the SRGM (Surface-to-Surface Guided Rocket Munition) facility to support new technologies. - Employee capability building is emphasized, focusing on re-skilling, with minimal new recruitment apart from lateral induction and entry-level hires. - No specific capex numbers are provided currently. - Efforts are ongoing to improve operational efficiency and turnover per employee, supporting strategic growth beyond traditional thermal power.

- India’s economic growth remains strong with a forecast over 6% in FY24, supporting infrastructure investment and industrial expansion. - Thermal power remains a major focus with a robust pipeline: ~3,700 MW favorably placed, ~6,000 MW under bidding, and ~9,000 MW expected to be bid soon. - Industrial orders, such as defense guns, show strong opportunities with expected business of INR 3,500-4,000 crores in FY24. - Significant new orders in industrial systems, including a large Vande Bharat rail project order exceeding INR 15,000 crores (including taxes) started this year. - Expectation of revenue growth aided by improved operational efficiency, new technology adoption, and diversification into non-thermal segments over 3-5 years. - Focus on executing large orders timely and leveraging long-term maintenance contracts (e.g., 35-year Vande Bharat maintenance) for sustained revenue streams. - Overall, BHEL anticipates gradual growth driven by thermal, industrial, and infrastructure sectors alongside ongoing modernization and cost optimization efforts.

- BHEL does not provide explicit revenue or profit guidance for FY24 or beyond. - The company expects higher margins in FY24 compared to recent years, depending on competition and cost-cutting effectiveness. - New orders in industrial segments may influence margins, but specific guidance is not provided. - Profitability from the Vande Bharat rail tender is expected primarily in the 35-year maintenance period rather than the initial supply. - Efforts to reduce provisions and increase recoveries are ongoing, aiming for no net creation of provisions in future. - Operational focus on timely project delivery is expected to improve financial performance. - BHEL anticipates growth from thermal power orders, with around 3,700 MW pipeline favorably placed and additional bids underway. - Spares business and manpower productivity showed improvement in FY23, aiding EBITDA growth by 11%. - Overall, margins and earnings are expected to improve with order execution and diversification into new technology areas.

- Total outstanding order book as of March 31, 2023: INR 91,336 crores (net of taxes). - With the Vande Bharat train set order finalized in April 2023, the order book crossed INR 1 lakh crores (excluding taxes). - Significant orders in FY '23 include: - 2x660 MW EPC order of NTPC Talcher thermal power plant. - 850 MW Ratle hydropower project. - R&M of GSECL Ukai TPS unit no. 3. - Seven STG units totaling 383 MW for industrial customers. - 22 WAG-9H locomotives. - 20 upgraded SRGMs for Indian Navy. - Centrifugal compressors for refinery applications. - Industry segment orders closed near INR 9,500 crores in FY '23. - Long pending power sector slow-moving orders approximately INR 17,000 crores. - Defense segment: expected 20 guns orders worth INR 3,500-4,000 crores in FY '24. - Vande Bharat order: over INR 23,500 crores (excluding GST), 80 train sets, spanning over 6 years execution.