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Informist, Thursday, Jan. 30, 2025

By Akshay V. Johnson

MUMBAI – Bharat Electronics Ltd. said it is confident of achieving a 15% revenue growth for 2024-25 (Apr-Mar). The company is confident of achieving earnings before interest, tax, depreciation, and amortisation at 23-25% and an order inflow of INR 250 billion in the current financial year, the management said in a post-earnings analyst conference call.

The company has achieved a total order inflow of INR 110 billion in FY25 till date, against its guidance of INR 250 billion order inflow for the current financial year. Many projects that are in the pipeline are in their contract finalisation stage, which the company is hopeful to get in the next two months, the management said. The company is confident about getting the contract to manufacture parts for Quick Reaction Surface to Air missiles for the armed forces in the next six to eight months, the management said. This is the largest order expected by the company in the next financial year.

The company's domestic non-defence segment accounted for 8% of its revenue for the nine months ended December. At the moment, the company aims to increase the contribution from the non-defence segment to the 10-15% range. Ideally, the non-defence segment should contribute to around 20-25% of the turnover as a logical mix, the management said.

The company has got an initial execution order, technically called a prototype order, for manufacturing the Kavach system. The order is to develop and install an indigenous solution, which will then have to be certified by the railway authorities, the management said. Kavach is an automatic train protection system to improve train safety. The company will get the full order for the Kavach system after getting certification from the railway authorities, the management said. 

The company expects to get around INR 250 billion-INR 300 billion for the Quick Reaction Surface-to-Air missile contract. The first phase of this project will be completed in 18–24 months, followed by two more years for the execution of the remainder of the project, the management said. The company expects around INR 140 billion to INR 150 billion for the Medium Range Surface-to-Air missile orders from the Indian Navy. The company will act as the lead integrator for the order from the Indian Navy. This order is expected to be completed over 4–5 years, the management said.

The company reported a higher-than-expected net profit for the December quarter. The company's net profit for the December quarter was up 47% on year to INR 13.16 billion, while the revenue grew 39% on year to INR 57.56 billion. Bharat Electronics' earnings before interest, tax, depreciation and amortisation for the December quarter were INR 16.53 billion, up from INR 10.49 billion, as calculated from the company's press release. The company's EBITDA margin was 28% for the December quarter, up from 26.5% in the year-ago quarter, management said. On Thursday, shares of the company closed at INR 278.75 on the National Stock Exchange, up 4.3% from the previous close. End

Edited by Akul Nishant Akhoury

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