Bharat Heavy Electricals Ltd

- No explicit mention of current or future fundraising through debt or equity is made in the provided transcript. - The discussion focuses on cost optimization, cash collection improvement, and operational efficiencies rather than raising new capital. - Cash and receivables management have improved with the lowest cash deficit in Q1FY22 in the last 10 years. - The company aims to scale up revenues and control costs to return to profitability, targeting a breakeven topline of around Rs. 30,000 Crores. - There is no direct indication of plans for debt issuance or equity fundraising in the questions or answers from the July 30, 2021 call excerpts.

- BHEL is focusing on scaling up revenue while controlling costs, including material and manpower costs, as part of a multipronged effort to achieve profitability. - The company is making capital and strategic investments in futuristic and emerging technologies such as Additive Manufacturing, Hydrogen Economy, Industry 4.0, Upstream Solar PV value chain, and Coal to Methanol. - A dedicated Hydrogen Business Group has been set up to identify and develop opportunities in the hydrogen value chain. - BHEL is exploring participation in Production-Linked Incentive (PLI) schemes for solar manufacturing and Advanced Chemistry Cells (ACC), considering tie-ups and technology collaborations. - Investments are being made to strengthen business processes, revamp project execution, and create a digitally enabled organization. - Efforts towards import substitution include manufacturing orders for critical components and indigenization of items previously imported, aligning with the AatmaNirbhar Bharat initiative. - There is an emphasis on cost optimization through design optimization and improving procurement efficiency via a dedicated Cost Optimization group.

- BHEL aims to scale up revenue rather than scale down, with a breakeven target around Rs. 30,000 crore. (Page 11-12) - The company expects topline growth driven by diversification into non-power segments, which have increased from 20% to 30% recently. Key focus areas include Railways, Defence, Aerospace, and EPC in Downstream Oil & Gas. (Page 6-7) - Order booking was Rs. 3,253 crore in Q1 FY22, with a total executable order book of Rs. 70,826 crore excluding GST and freight. (Page 4, 5) - Several large orders are in the pipeline, including 2x660 MW NTPC Talcher, FGD orders (around 30 GW of capacity), and others like NTPC Singrauli, Lara Thermal, and Talabira TPS tenders. (Page 4, 9) - Growth is supported by cost optimization efforts, indigenous development to reduce imports, and foraying into futuristic technologies such as hydrogen economy, additive manufacturing, and Industry 4.0. (Page 3, 5) - Management is confident of returning to profitability and revenue growth within one to two years. (Page 11)

- BHEL aims to scale up revenues rather than scaling down (Page 14). - Targeting revenue levels close to Rs. 30,000 crore to achieve profitability/breakeven (Page 11, 6). - Focus on multipronged cost optimization: material costs, manpower costs, and other expenses to improve margins (Page 14, 5). - Expect reduction in employee costs with control measures keeping costs range-bound around Rs. 5200-5300 crore (Page 12). - Sequential execution improvements have resulted in better cash flow, billing conversion of 83%, and receivables management (Page 13). - New business verticals like Railways, Defence, Aerospace, and emerging technologies to contribute to growth (Page 6, 3). - Ongoing order book and favorable positioning in key tenders (NTPC Talcher, FGD orders) expected to support revenue growth (Page 4). - Management confident of reversing losses, with Q1FY22 post-tax loss reduced by 50% compared to Q1FY21 (Page 3).

- Total order book as of June 30, 2021, is Rs. 1,02,098 crore. - Executable order book excluding GST and freight is Rs. 70,826 crore. - Sector-wise split: Power sector Rs. 84,586 crore, Industry sector Rs. 11,187 crore, International operations Rs. 6,325 crore. - Q1 FY22 order booking: Rs. 3,253 crore (Power Rs. 2,502 crore, Industry Rs. 694 crore, Exports balance). - Key pending orders where BHEL is lowest bidder (L1): - NPCIL TG Island contract (award expected within a month). - 2x660 MW NTPC Talcher main plant package (finalizing, local/state govt. issues). - Active tenders for major projects: - 3x800 MW Talabira TPS (NLC India Ltd.) - 2x800 MW NTPC Singrauli. - 2x800 MW NTPC Lara Thermal power plant. - FGD tenders around 30 GW in various stages. - Additional pending FGD orders (~Rs. 10,000 crore, ~15% of executable order book).