Coalgate muddles BHEL’s order book position: Nomura
12 Sep 2012
State-run electrical equipment maker Bharat Heavy Electricals Ltd (BHEL) could take a big hit from the coal block allocation scam, although the company has little involvement in the whole affairs.
BHEL may face cancellation of 28 per cent of its total order book, financial services group Nomura said in a research paper.
BHEL had reported outstanding orders worth about Rs1,32,900 crore at the end of first quarter 2012-13.
According to Nomura, orders worth Rs53,218 crore run the risk of cancellation, while orders worth Rs31,263 crore have already been classified as 'slow'.
''The next 2-3 years could witness a significant clean-up of the system as several orders placed with BHEL, by its customers, could be restructured, cancelled or deferred,'' a Nomura Equity Research report said
Nomura cited the reasons as either non-availability of coal linkage or cancellation of existing coalmine or linkage as a fallout of the allocation scam.