- 27 Mar 2023
- ICICIdirect Research
Bharat Electronics receives orders worth Rs 4300 crore from army, navy
BEL - 111 Change: 0.40 (0.36 %)News: The Ministry of Defence (MoD) has signed a contract worth Rs 3000 crore with Bharat Electronics (BEL) for the procurement of two Himshakti Integrated Electronic Warfare (EW) Systems. The contract was signed under the Buy Indian-IDDM (Indigenously Designed, Developed, and Manufactured) category. The EW system is designed & developed by Defence Research and Development Organization (DRDO) in collaboration with its manufacturing partner BEL. The Himshakti EW system is designed for operations in mountainous terrain, with a specific focus on countering Chinese military threats. BEL has also received several contracts totaling to ~Rs 1300 crore from the Indian Navy for supply of Indigenously developed fire control, gun fire control, surveillance, tracking, electronic support measures (ESM), sonar systems, etc
Views: The government notified Himshakti integrated EW system in the fourth positive indigenization list announced in October 2022. BEL’s management has also been indicating in earnings conference calls about receiving this contract from Army. BEL's total order inflow was at ~Rs 12000 crore in FY23 till date against the management’s full year guidance of Rs 20000 crore. The current order backlog is estimated at ~Rs 54000 crore (3.1x TTM revenues) providing strong revenue visibility. Data Patterns (DPIL) is also expected to get contract from BEL for sub-systems or components of Himshakti EW and other electronic warfare contracts received by the company
Impact: Positive