Bharat Electronics' Order Book Already At 30% Of FY24 Guidance: Chairperson
Prakash Srivastava talks about the company's order book, pipeline, capex and forays in emerging markets.
Bharat Electronics Ltd.'s order book has reached almost 30% of its full-year guidance for fiscal 2024 after it won contracts worth Rs 5,900 crore, according to Chairperson Bhanu Prakash Srivastava.
He said Rs 3,914 crore of the order came from Bharat Dynamics Ltd. in relation to their Akash Prime projects. It includes ground-support equipment, surveillance, and tracking, as well as seekers for the missiles.
The remaining Rs 1,984 crore of the order book comes from other small orders like ground-based link systems, communication systems, and spheres for electronic warfare systems. The orders also include Shakti EW, Sanket MK III (Naval Systems) and MKBT systems, the managing director told BQ Prime.
The company also has a Rs 4,500-crore order for electronic fuses from the army and a Rs 5,000-crore order of sensor equipment for shipyards in the pipeline.
In terms of revenue division between domestic and exports, the company is targeting exports to be $90 million in fiscal 2024, compared to $48 million in FY23. The company's order book includes Rs 60,690 crore ending fiscal 2023 and Rs 5,900 crore so far this fiscal.
Diversification In Emerging Markets
The company has already started diversifying into various emerging segments, such as the civil aviation sector, where it has indigenously built an airport surveillance radar and developed an air-traffic management system, Srivastava said.
Bharat Electronics has also been working with the Delhi Metro Rail Corp. on various projects, substituting inputted solutions, driving circulate simulators, computer-based control systems, and others. It is also working in the sectors of unmanned systems, cyber security, software, and energy storage.
Srivastava emphasised that although the company forayed into different markets, the timeline of accruing revenues from these projects would take time due to the nature of the business, and the certification and approval processes in safety involved in the civil and railway industries.
The company expects these projects to accrue Rs 1,000 crore in 18 to 24 months.
Outlook On India-U.S. Defence Cooperation
The company would benefit from product opportunities that might develop due to India-U.S. defense cooperation, Srivastava said. The firm would be a good bet in electronics for the U.S.-based companies that might come to India for defence-manufacturing needs in the future.
Bharat Electronics already works with major U.S. players. It is involved in a joint venture with GE HealthCare for medical equipment and Boeing for the manufacturing of subassemblies. This familiarity with foreign companies will help the business when product prospects come in, Srivastava said.
Capex Utilisation
The company is spending over Rs 500 crore in capital expenditure this year for both building new factories and enhancing current production and manufacturing equipment.
Currently, it has four factories under construction—a factory for advanced electro-optic systems in Machilipatnam, a plant for land-based EW systems in Ibrahimpatnam, a defence system integration complex in Anantapur in Andhra Pradesh, and an electronics-use factory in Nagpur.
These factories are expected to take care of the company's business opportunities in the next two to three years.
