- 24 Mar 2023
- ICICIdirect Research
Bharat Electronics signs contracts worth ~Rs 3750 crore with government for IAF
BEL - 111 Change: 0.70 (0.63 %)News: Ministry of Defence (MoD) has signed two separate contracts with BEL at a total cost of ~Rs 3,750 crore to enhance the operational capabilities of the Indian Air Force (IAF). The first contract, worth ~Rs 2,800 crore, pertains to the supply of Medium Power Radars (MPR) ‘Arudhra’ for the IAF. The second contract, at an overall cost of ~Rs 950 crore, relates to 129 DR-118 Radar Warning Receivers (RWR). Both projects are under Buy {Indian – IDMM (Indigenously Designed Developed and Manufactured)} category. The Arudhra radar and the DR-118 RWR have been indigenously designed and developed by Defence Research and Development Organisation (DRDO)
Views: The DR-118 RWR was one of the equipments notified by the government in the third positive indigenisation list in April 2022. This will be equipped on all Sukhoi-30 aircraft under the upgradation programme of these aircraft. As the current contract is for 129 RW|, we expect a follow up contract also for this as the Su-30 upgradation programme is for all operational 250 aircraft. The Arudhra radar, which is for surveillance, detection and tracking of aerial targets, is already been used by IAF. These will be manufactured by BEL with private players like Data Patterns and Astra Microwave also involved in both systems. BEL's total order inflow is at ~Rs 7500 crore in FY23 till date against the management’s full year guidance of Rs 20000 crore. The current order backlog is estimated to be at Rs 50000 crore (~3x TTM revenues) providing strong revenue visibility
Impact: Positive