BEL Share Price: Defence PSU Gets ₹730 Crore Additional Orders; Stock Falls 1.14%
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Bharat Electronics secured ₹730 crore of additional orders since August 10, covering defence electronics, cyber security, medical electronics and other products.
Shares of Bharat Electronics Ltd (BEL) closed lower on Wednesday, August 26, despite the defence electronics company announcing additional orders worth ₹730 crore.
The state-owned company said it has received the orders since its previous disclosure on August 10. BEL shares ended 1.14% lower at ₹408.55 on Wednesday.
The latest order wins cover several product categories rather than a single large defence contract. These include communication equipment, radars, avionics, tank subsystems, electro-optical systems and cyber security solutions.
BEL has also received orders for perimeter security systems, medical electronics, electronic voting machines (EVMs), jammers, batteries, spares and associated services.
BEL order book: What has the company won?
The ₹730 crore order intake is spread across multiple businesses, giving BEL exposure to both defence and non-defence requirements.
Its core defence-related orders include communication systems, radars, avionics and tank subsystems. The company will also supply electro-optical systems, which are used for applications such as surveillance and target detection.
Cyber security and perimeter security systems form another part of the latest order wins. BEL has also secured contracts for medical electronics and EVMs, adding to its non-defence business.
The company did not provide details of the customers, individual contract values or the expected execution schedules for the orders.
BEL Q1 results: Revenue rises 25%
The latest order announcement comes after BEL reported strong revenue growth for the June quarter.
Standalone revenue increased 25.3% year-on-year to ₹5,533 crore in Q1, compared with the corresponding period last year. Net profit rose 8.8% to ₹1,054 crore, while EBITDA increased 12.1% to ₹1,389.2 crore.
However, profitability growth remained slower than revenue growth. BEL's EBITDA margin declined to 25.1% from 28.1% in the year-ago quarter.
This means that while the defence major continued to see strong growth in revenue, the increase did not translate into a proportionate rise in operating profit.
The latest ₹730 crore order addition nevertheless adds to BEL's order visibility across several product categories, ranging from defence electronics and radars to cyber security and medical electronics.
BEL shares closed 1.14% lower at ₹408.55 on the NSE on Wednesday.
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Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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