Feb. 17 (Bloomberg) -- Bharat Heavy Electricals Ltd., India’s biggest power-equipment maker, had its steepest gain in three years after a rival lost a case to supply to NTPC Ltd. fueling speculation of increased orders from the utility.
Bharat Heavy surged as much as 14.2 percent to 325 rupees at 10:22 a.m. in Mumbai, the highest since May 19, 2009. Larsen & Toubro Ltd., India’s biggest engineering company, added 3.7 percent to 1,502.7 rupees, while the benchmark BSE India Sensitive Index added 1.4 percent.
India’s Supreme Court yesterday reversed a lower court order that allowed Ansaldo Caldaie Boilers India Pvt. to bid to supply equipment to NTPC along with Bharat Heavy. The company based in New Delhi posted its slowest quarterly profit gain in almost four years in the period ended Dec. 31.
“NTPC will now release new power equipment orders,” Jigar Shah, an analyst with Kim Eng Securities India Pvt., which has a “sell” recommendation on Bharat Heavy, said in a note to clients today. “NTPC has shortlisted 3 bidders including Bharat Heavy Electricals and Larsen & Toubro among which new orders could be shared.”
NTPC rejected Ansaldo Caldaie’s bid because it wasn’t a qualified manufacturer. Ansaldo Caldaie, a venture between Gammon India Ltd., a construction company, and Italy’s Ansaldo Caldaie SpA, contested the decision.
The utility had sought bids for equipment valued at 110 billion rupees ($2.2 billion) for the expansion of its power plants, Prashant Kumar, Ansaldo’s lawyer said on March 2.
NTPC is ordering 11 units of steam generators of 660 megawatts each for projects at Mouda, Solapur, Nabinagar, Meja and Raghunathpur.
Bharat Heavy’s profit rose 2.1 percent in the third quarter, the slowest pace of increase since a 71 percent drop in earnings in the period ended March 31, 2008.
--Editors: Arijit Ghosh, Sam Nagarajan
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