- 20 Oct 2022
- ICICIdirect Research
BEL receives letter of intent from TEV IndiaBEL - 92 Change: -0.55 (-0.59 %)
Bharat Electronics (BEL) has received a letter of intent (Lol) from Triton Electric Vehicle India (TEV India - part of Triton Electric Vehicle LLC, US) for supply of 300 KW Li-Ion battery packs for their semi-truck project in India. The value of this contract is Rs 8060 crore. BEL has also signed an MoU with the company for manufacture of hydrogen fuel cells (with technology transfer from TEV) to meet the requirements of Indian market and mutually agreed export markets. The battery packs are to be delivered by BEL to Triton in 24 months commencing from January 2023.
BEL has been expanding its non-defence share in the total revenues through various areas including railways, metros, renewable energy, energy storage products including for e-mobility, smart cities etc. The contract for Li-Ion battery packs and MoU for hydrogen fuel cells aims at tapping the demand for clean energy solutions for various applications including for e- mobility. We believe that the company’s strategy to diversify into non-defence areas would aid long term growth and help de-risk its business. BEL’s order backlog stood at Rs 55,333 crore as of June 2022 end (~3.3x TTM revenues) and total orders worth Rs 18,000-20,000 crore are expected in FY23E (including defence and non-defence areas).