- 17 Jan 2025
- ICICI Securities
BDL BAGS RS 2960 CRORE ORDER
News: Ministry of Defence (MoD) has signed a contract with Bharat Dynamics (BDL) for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy at a cost of approximately Rs 2,960 crore. The MRSAM system is a standard fit, onboard multiple Indian Naval Ships and is planned to be fitted on the majority of the future platforms planned for acquisition. The contract marks a critical milestone in the ongoing efforts to bolster India’s defence capabilities and indigenise advanced military technology.
Views: With this contract, total order intake during YTDFY25 is ~Rs 3110 crore (vs Rs 1793 crore in FY24). Order backlog is estimated to be at ~Rs. 21000 crore (9.5x TTM revenue), gives healthy revenue visibility. Order pipeline also remains strong in missiles, torpedos, sonobuoys, counter measure dispensing system etc. Orders execution will be the key thing to watch out for in the coming period as the execution has been impacted in the last 2 quarters (H1 revenue was down 19% yoy) due to supply chain issues.
Impact: Positive