Bharat Electronics Limited (BEL) received orders worth Rs. 5,900 crore as of June 20 in the financial year 2023-24. This includes order for two Regiments of Improved Akash Weapon System (AWS) with upgrades from Bharat Dynamics for a value of Rs. 3,914 crore.
Akash is an all-weather, point/area air-defence weapon system intended for defending vulnerable points/areas against threats emanating from low, medium and high altitudes. The system uses high mobility vehicles for mobile application. The improvements incorporated include high altitude operation, simultaneous engagement of multiple threats over 360 degrees, missiles fitted with RF Seeker and reduced foot print.
Other significant orders valued at Rs. 1,984 crore include Shakti EW & Sanket MK III (Naval Systems), GBMES & GBVU Com Jammer systems, MKBT systems, IFF-MKXII Crypto Modules & Up gradation of SDP & Display of Rohini Radar, Training system for CMS P15B & CAMC of CMS for P 28, etc.
The Navratna PSU announced good set of fourth quarter results with standalone revenue growth of 2 percent year on year to Rs 6,460 crore led by a healthy order book execution. The gross margins expanded 636 bps to 48.2 percent, with softening commodity prices and business mix.
The defence stocks surged ahead of PM Modi's visit to the US on June 19th as there are multiple defence deals on the radar. The defence sector is a key beneficiary of the Make in India and Atmanirbhar Bharat policy as self sufficiency is a key focus for the Indian central government. To add to it, China +1 strategy works in favor of Indian defence equipment makers.
Indian PSUs have been working on developing efficiencies and executions, which is reflected in the large executed order books of these players. In a recent development, a deal will be signed between General Electric and Hindustan Aeronautics which will entail 80 percent transfer of jet engine technology by value. CNBC-TV18 has learnt that the deal for co-production has been approved by the highest political levels in India and the US and will be formally announced during the state visit of Prime Minister Narendra Modi.
BEL ended the trading session on June 20 at Rs 125 per share with no gains.
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