Buzzing Stock: Bharat Electronics receives the biggest avionics order ever from HAL

The total order consideration is reported at Rs 2400 crore and will span 5 years.

Defence PSU, Bharat Electronics Limited (BEL) announced today that it secured an order worth Rs 2,400 crore from Hindustan Aeronautics Limited (HAL) for the manufacture and supply of 20 types of airborne electronic systems to be fitted on fighter aircraft for the prestigious LCA Tejas Fighter aircraft programme.

Spanning a period of 5 years from 2023 to 2028, the order will involve the supply of critical avionic Line Replaceable Units (LRUs) related to Digital Flight Control Computers, Air Data Computers, Weapon Computers, Radar Warning Receiver (RWR) and Head-Up Display. The order will be executed by two Strategic Business Units (SBUs) of BEL, namely, Electronic Warfare & Avionics, Bengaluru, and BEL Panchkula, Haryana.

During the latest quarter, the company’s revenue grew 14.78% YOY to Rs 3636.6 crore. On a sequential basis too, the top-line was up by 130.87%. An increase in revenue was on account of the higher execution during the quarter after a weak Q1. PBIDT (Ex OI) was reported at Rs 864.01 crore, up by 37.73% as compared to the year-ago period and the corresponding margin was reported at 23.49%, expanding by 386 basis points YoY. PAT was reported at Rs 610.04 crore, up by 54.07% from Rs 395.96 crore in the same quarter for the previous fiscal year.

BEL’s order book as of September 2021 stood at Rs 54627 crore which is 3.8x TTM revenue and provides healthy revenue visibility for the company. The order book comprises major programmes like LRSM, Akash and Integrated Air Command Control System (IACCS).

At 12.50 pm on Thursday, the stock of Bharat Electronics Limited was trading at Rs 208.75, up by 0.34% or Rs 0.70 per share as against a 0.17% gain in the benchmark index. The 52-week high of the scrip is recorded at Rs 227.95 and the 52-week low at Rs 106.40 on the BSE.