- 31 Mar 2023
- ICICIdirect Research
Bharat Electronics signs multiple contracts worth Rs 8194 crore with government
BEL - 120 Change: 2.80 (2.38 %)News: Ministry of Defence (MoD) has signed 12 different contracts worth Rs 8194 crore with Bharat Electronics (BEL). These include two contracts for Indian Air Force (IAF) - 90 Electronic Warfare (EW) Suite Equipment for Medium Lift Helicopter and Annual Maintenance Contract (AMC) for Akash Missile System. Three contracts are for Indian Army - Automated Air Defence Control & Reporting System (Project Akashteer), Instant Fire Detection and Supressing System IFDSS for T-72 tanks and 12 weapon Locating Radar (Swathi). The balance seven contracts are for Indian Navy - 1265 Software Defined Radio (SDR), 1178 HD Very Low Frequency (VLF) High Frequency (HF) Receiver, 12 Sarang systems to be installed on Kamov-31 Helicopters, Inertial Navigation System for Ship Application (INS-SA), CMS for Project-17 frigates & Project-28 corvettes, Varuna EW and 13 LYNX U2 Fire Control Systems
Views: With these contracts, BEL’s total orders inflow is estimated at ~Rs 20200 crore in FY23 till date, largely in line with the management’s full year guidance. As mentioned in some of the contract details, execution period is expected to be two to four years. The current order backlog is estimated to be at ~Rs 62200 crore (3.5x TTM revenues) provides strong revenue visibility. Data Patterns (DPIL) is also expected to be the beneficiary in terms of supplying sub-systems or components in some of these contracts like Electronic Warfare (EW) suite equipment for upgrade program of Mi-17 medium lift helicopters, weapon locating radars and fire control systems
Impact: Positive