The shares of India’s leading player in the defence electronics manufacturer gained nearly 1 percent to an intraday high of ₹336.40 per share on Monday after it received ₹230 crore work order from the reliance group.
At 12:45 p.m., On Monday, Bharat Electronics Ltd shares were trading at ₹332, down 0.39 percent from the previous close on the National Stock Exchange. The company has a market capitalization of ₹2,42,831 crores
What News: Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has received an export order worth €25.75 million (approximately ₹230 crores) from Thales Reliance Defence Systems (TRDS) for the production and supply of Transmit Receive (TR) modules for fighter aircraft radars.
Additionally, since June 28, 2024, BEL has secured orders worth ₹192 crores for communication equipment, encryptors, spares, and services for radars and fire control systems. With these new orders, BEL’s total orders for the current financial year amount to ₹5,225 crores.
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Thales Reliance Defence Systems Limited is a partnership between Thales, a French company, and Reliance Infrastructure Limited. Reliance Infrastructure Limited owns 51% of the joint venture, while Thales owns 49%.
About the company: Bharat Electronics Ltd(BEL). manufactures and supplies electronic equipment and systems to the defense sector. The company has expertise in designing, developing, manufacturing, and supplying a wide range of strategic electronic products/systems.
The company’s product portfolio includes defense communication products, naval systems, land-based radars, avionics, electro-optics, tanks, etc.
The company’s shares have delivered a return of around 75 percent in six months and 160 percent in a year.
Financials: The company’s revenue has gained by 14 percent year on year, rising from ₹17,734 crores in FY22-23 to ₹20,268 crores in FY23-24 During the same period, net profit has increased by 33 percent, from ₹2,986 crores to ₹3,985 crores.
The company management expects ₹ 50,000 crores worth of orders in the next 2 years. as well as planned a Capex outlay of ₹700 crores to ₹800 crores capital expenditure plan for the next 2 years.
Future plans: BEL management aims for 15% revenue growth in FY25, targeting an EBITDA margin of 23-25%. The company expects large orders worth Rs 15,000 crore soon and projects order acquisitions of Rs 25,000 crore for FY25. Additionally, BEL anticipates an export order exceeding $200 million.
Over the next two years, BEL forecasts work orders totaling Rs 50,000 crore and has planned a capital expenditure outlay between Rs 700 crore and Rs 800 crore.
Written by Omkar Chitnis
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