Bharat Electronics Limited

Amit Dixit

qa

Amit Dixit

qa

Management

qa

Amit Dixit

qa

Management

qa

Harshit Patel

qa

Harshit Patel

qa

Harshit Patel

qa

Harshit Patel

qa

Management

qa

Impact of that will be really visible in next couple of years.

— Management

Q

Yes, hi. Good morning, everyone, and congratulations for a great set of numbers, sir. I have a couple of questions. The first one is essentially on the order in flow that we can expect during the year. Now the year started with a bank for you with the order in flow of roughly 8,090 crores in Q1 FY24. Going ahead I believe there are orders for you know a few bits for Indian Army 4,500 crores apart from some other platform. So if you can just highlight you know whether the number that you guided last time to 3,000 crores that is still remains or there is a chance that it will be exceeded?

Management

No, we hold by order in flow in this financial year around 20,000 crores and any significant change if it happens in future we'll let you know. But as of now we are confident that we will be able to receive 20,000 crores plus order. Okay so any ideas of when we will be getting this long-term fuse order from Indian Army and some if you can just let us know that for apart from the fuse order, you know, other Swathi, Radar and all, when these orders will come. See, this is a fuse, PNC is concluded, and then the process under MOT. So it takes its own time. So we'll come to know when order is appro

Q

Thank you very much for the opportunity, sir. My first question is on our content that we provide in light utility helicopter and light combat helicopters, because I think these two platforms are going to be produced in bulk, and therefore will be a recurring revenue stream for us. So what are the systems that we provide to HAL for these platforms, and what would we share in the overall value of a helicopter?

Management

See we are still in discussion with HAL so at this point of time it is premature to give you figures but once we move ahead we'll let you know. Sure sir but then in ALH group I think we would be supplying quite a lot of avionics products. So if you can elaborate, so we can take a cue from that as to what we will be providing. I told you at this point, I think, see, all discussions happens unless we move ahead and then travel some distance, it's premature at this stage. No problem, sir. So my second question is just from the question of the earlier participant. If you can highlight four or five

Q

Can you give us a sense on what are the… what is the status on big ticket prospects like QRSAM and MRSAM, which you mentioned could get awarded over a FY ‘25 time frame. What is the progress around these two large contracts? Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrfiON/cs QUALITY. TECHNOLOGY. INNOVATION

Management

See QRSAM's trial reports and all has been submitted by two armed forces and we have given some rough order of magnitude pricing also. What will be the likely pricing based on the likely configuration which on which they are working. So post that now they will be working on that AON pricing and AON proposal statement of case and also that will go through. Okay. So is it reasonable to expect that this can come over a FY ‘25 time frame. Yes it is reasonable as of now. And this will be like a INR15,000 crores kind of a contract in terms of ticket size? It's difficult to say exact value. Yes, it d

Q

Hello, sir. Thanks for the opportunity and congratulations on good set of numbers. So, sir, my first question is regarding the non-defense sector or the, civilian sector. So, what are the kind Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrfiON/cs QUALITY. TECHNOLOGY. INNOVATION of opportunities you are seeing there? And we had done a lot of work in terms of airport security control and metro-related work. When can we see the ordering starting from that particular segment? That's my first question.

Management

Last time also I told that this takes time. So metro segments like IATS, we have already delivered one system, it is in operations. So now when future metros and wherever they are going to upgrade, there is an opportunity. Similarly, on other products of metro where we are working like developing CBTC and Super SCADA and simulators in all it will come in phased manner and related business opportunities are also coming. But in my opinion significant business it may take one to two years minimum, where it will be impactful what you say that revenue opportunity will be there in this segment. Simi

Q

Good morning, sir. Congratulations for the good numbers. I want to know about the execution which you're looking at for during this financial year. We had an order book of INR60,690 crores as on 31, March, and about INR20,000 crores orders are expected during -- how much of these orders will we be able to execute? This is first question. And second question is, we signed a large number of MOUs during last one year. Any of these MOUs you see converting into orders or any opportunity size?

Management

We are right on track as we have given a guidance of around 17% revenue growth, which translates to sales turnover of around INR20,000 crores-plus in this financial year. So we are on track because that is based on what order book we had in on 1, of April. As of now, you are aware, INR65,356 crores as on 30, June we had ordered. So execution right on track based on the requirement of our customers. Because it's not like all orders can be executed at the same time. It depends upon the terms and conditions of the contract, when it is required by customer, what are the conditions. Many new contra

Q

Thank you so much for the opportunity and congratulations on a great set up number. So my first question is on the non-defense segment of our revenue. So how much is the contribution from the non-defense and specifically from the EVM and VVPAT machines that are expected this year? And what kind of margin do we have in a non-defend segment?

Management

See, non-defense sector EVMs will be around INR800 crores to INR900 crores this year. I think, For the current quarter per se, the EVM, VVPAT and defense, non-defense was in the ratio of 75%, 25% for the current quarter because we have sold more EVM, VVPATs for the forthcoming elections. But for the year as a whole, the ratio would be around 80%, 85% in Defence and around 15% to 20% in Non-Defence. It's around that range. 15% to 20% will be, 15% could be because of the EVM VVPAT, 15% will be in Non-Defence. 15% and 85% in Defence. Okay, so from EVM and… Margins are concerned as you know, we do

Q

So, and the second thing is on the, we ended FY ‘23 on a strong cash balance. So, any capex or any capex guidance for this year?

Management

Capex guidance remains at around INR700 crores to INR800 crores for the current year. So, that is mainly maintenance capex or any growth capex? No, growth capex is also there in that. Maintenance of course will be there, some of the maintenance will also be there and there are some growth capex, there are large infrastructures coming up. So it is a long-term growth, not that it will give growth in one or two years because there are some buildings which are coming up, infrastructure development, all this will take some time to fructify. But obviously it's a mix of both, maintenance also and aug

Q

Good morning, sir. Thank you for the opportunity. A couple of questions. Firstly, can you talk about the employee cost? Yes, so on the employee cost, even on a Q-on-Q basis, there's some jump in the employee cost. So, if you can explain that? Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrfiON/cs QUALITY. TECHNOLOGY. INNOVATION The second question was on, we made some large provisions in the last two quarters of FY ‘23, is there an element of write-back that is expected in the current year? And or do we expect further more provisions, pertaining to that one or two projects that sort of like that? And the

Management

On the first question the employee benefit expense increased from INR576 crores to INR623 crores it's a normal increase of DNS, allowance and some contract labor -- some extra contract labors have been put, so those that sort of things. Nothing much on actuarial impact is there on this. So it's just normal increase of around 8% in salaries. It's normal increments, dearness, allowance, and other contract people joining. So it is on those things. As far as salary is concerned, not much actuarial impact is there in the first quarter. And as far as your second question was on provisions? Provision

Q

First is on the expansion that we are doing on six to seven locations across Pune, Mangalore, Nagpur, etcetera, if you see the capacity expansion, also we are maybe adding a lot of tests in a line so it has been a restraint for us in revenue building, etcetera. And do you think FY25, next two, three years, the revenue run rate can increase because of this? Because I think this year you're going to execute LRSAM completely and voting machines, etcetera. So does that call for much better revenue building in the next two, three years? That's my first question. Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrf

Management

See, as you are aware, new electro-optics company is coming, building is coming in Nimaluru. EW systems for land-based, that EW equipment is coming in Ibrahimpatnam, Nagpur for a huge complex. So major expansion in Hyderabad unit for microwave component. So yes, definitely this will help in execution of the project. As of now, what we see is, revenue growth in the region of around 15%, 17% in next two years, depending upon what is the order in pipeline because all these orders are not executable in one year even as per contract, so even if whether it is QRSAM or any other big ticket programs a

Q

Yes. Hi, sir, good morning. Thanks for your time as always. And just continuing with Amit's question, when I look at our order book between ‘20 to ‘23, you know, so we were at about INR52,000 crores in ‘20, went up to about INR60,000 crores in ‘23. This year also assuming we do INR20,000 crores of orders and other revenues, we'd probably be flat, right, in terms of the order book on a YoY basis around that INR60,000 crores number. Plus, you know, even the orders we get this year, for example, if fuses is more like a 10 year order, the [inaudible 0:28:15] is more like a four, five year order. S

Management

No, growth will be there. See, this year we are projecting an order inflow of around INR20,000 crores. Definitely next year it will be more. Because many platforms are coming P75I, that P76 programs are coming where we have indigenous content, where we are bar nominated equipments we are having so and with country’s Atamnirbhar program, any big platform government is working on that, there will be electronic equipment and we have got a very good opportunity to chip in that. So it will continue government defense spending will increase our order book. Definitely it will not be flattening at INR

Q

Good morning and thank you for the opportunity, sir. My first question is, can you update on what was the mix of exports during the current quarter?

Management

Current quarter, the exports was around INR87 crores in numbers. Of course, it's about USD10 million we can take it. So please. Sure. Secondly… Rather INR87 crores, approximately. Sure. Secondly, can you also share some update on the large projects, which we are executing, LR-SAM, completion of IACCS project, and Akash missiles. Where are we in terms of the execution timeline? As in execution in terms of percentage of the order, which has been completed. And update on the level of indigenization, which you have broadly achieved, or which is targeting to achieve this year for LR-SAM. Because we

Q

Hello everyone and thank you for the opportunity. My first question was on gross margins, which for this quarter have been higher than the 40% to 42% range that you've guided for the full year. I wanted to check, whether the stance on the full year guidance has in any manner changed and if not, so is it more linked to this quarter having a higher EVM and VVPAT kind of contribution that gross margins are higher?

Management

We would not like to comment on whether it is an EVM and VVPAT or what, but overall the guidance remains the same that 40% to 42% gross margin for the current year and EBITDA of 21% to 23%. It is only the composition of various orders, which have been executed in the first quarter, which has given a higher margin. Going ahead, during the year, we expect to maintain the guidance, which has been given earlier. The second question that I had was more on the aspect of indigenization. From your last con call, I understand that, it may more be a volume impact rather than a margin impact. I wanted to

Q

Good morning, sir. My question is on the fuse complex, the Nagpur fuse complex, which we are setting up. If you can talk about the timelines and the capacities, what will be the capacities for the year, after this expansion? What is it currently?

Management

Fuse complex already first phase, we have done that is building the boundary and levelling and all these things. Now we are going for building construction, So tender and all are going. So another two years, it should come. So it will address long-term fuse contact requirement and any additional fuse business, which will be there apart from this long term. Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrfiON/cs QUALITY. TECHNOLOGY. INNOVATION I'm sorry, what will be the capacity like? Will it be like 2 lakhs, 5 lakhs fuses per year, after this capacity? We cannot specify that exact capacity because capacit

Q

I had only one question. Let me complete the second question and then I will come back in the queue, if that's okay. Sf/-dc1 grr)ctCH<i?ct-<H BHAMreiecrfiON/cs QUALITY. TECHNOLOGY. INNOVATION

Management

Q

Yes. My second and final question is, last time you talked about that PMC was almost over and we had one small issue, which needs to be resolved and it will be resolved in the next one month related to fuse? So is that

Management

Related to? Fuse only. Trials may. You are talking about fuse [SMO 0:43:52], okay. There is no issue now. This order is in pipeline. It is under process in MOD. It should come. There is no issue. As of now, there no issue in fuse business. Sorry, when should it come sir? It's only MOD knows. If you were in the beginning, we are told that it is, they're asking one month, two months, we told maximum today's at this point of time or anticipation is maximum. It should come within six months. From today? From today. It is our anticipation today. Okay. Sure, sir. Thank you for answering.

Q

Hi, sir. Thanks for taking my question. My question pertains to export. you highlighted that, this year, we are targeting USD19 billion export. So that roughly comes about 3% to 4% of the guidance, which you are giving for the full year. Just wanted to understand, earlier we used to talk about, raising exports to some 10% odd. So what are our targets for upcoming years on export and what exactly, we are exporting, which geographies, we are exporting, if you could highlight that and are we targeting any non-defense export also? Yes, that is my first question?

Management

See, currently we have an order for TR modules from Thales France, some electro-optics equipments from Israel. We are also giving to Airbus Japan something to allot of them also. So, these are equipments which are part of [inaudible 0:45:46] where we have, we are manufacturing them, some of the items and supplying them. Apart from that, we are also -- we have supplied to Maldives also, we have AMC from Maldives. We are also working with some companies in USA for manufacturing their products in India. Friendly countries we are working, we are offering like Vietnam also. Our teams are visiting,

Q

Yes, sir, I have a couple of questions. The first is on Uttam AESA radar. So, can you highlight the status of these radars because we understand that these radars will be installed on Tejas MK1A or upgraded Sukhoi. And since Tejas MK1A deliveries will start from this year end, so just wanted to understand by when we are expecting orders for Uttam radar and what could be the size of this order?

Management

Uttam, I think there are two players in that one private player and we are there. So, we are working on at this time I would not like to dwell on much details once we move ahead in some visibility is there we'll let you know. And sir regarding this order book of 65,356 crores out of this how much it is for non-defense? Non-defense constitutes around 6% as of now. Okay, and what is the average execution period of this non-defense part? Non-defense normally we are able to execute in one or two years. Non-defense they don't go beyond that. Understood. Okay, sir. Thank you. Sf/-dc1 grr)ctCH<i?ct-<

Q

Thank you sir for the opportunity. I have two questions. First of all, I would like you to help us understanding the AEW and AWACS opportunity.

Management

Not clear. Your voice is not clear. Sir, am I audible right now?

Q

Yes, I'm asking about the AEW and AWACS opportunity, as there's a significant gap between India and its advisories. The government has been planning for upgrading the AEW and AWACS program. But then around 5,000 crores, 6,000 crores of program, which is still pending for, I think, five, six platform based on A330 aircraft. So, I just want to understand what is the status and if I consider per aircraft thousand crores orders, then what is our contribution?

Management

See our team -- this is in preliminary discussions and there are other players also involved. So, our team also is working on that. So, since other players are also involved, I would not like to give comments on this. Okay, so my next question is, if you can break it up your current order book of around 65,000 crores into defense and in defense how much is the EW and what is the portion of the space? See, if you see around 6% is non-defense and if EW segment is around 15,000 crores. And what about space, sir? Space, we have not specified separately. So, is the scenario of space, orders is well

Q

Hello, sir. Hello, can you hear me?

Management