Bharat Electronics Ltd. expects to clock aggregate orders worth over Rs 20,000 crore each in the current fiscal and in FY24, according to Chairman and Managing Director Bhanu Prakash Srivastava.
“It (order book) can be much more than this because… (it) depends upon how government is spending the money and defense budget and what are the priorities of the government,” Srivastava told BQ Prime’s Niraj Shah in an interview.
The company sees growth potential in exports as well, he said.
While the company has an export order book of only Rs 2,000 crore, it is moving “aggressively” and has opened marketing offices across countries such as Myanmar, Vietnam and Oman.
The aggregate order book stands at Rs 52,000 crore with an execution time of nearly four years, he said.
“Around Rs 25,000-Rs 30,000 crore (of the order book is) for naval business, which are based on the manufacturing of ships and submarines. So, typically, frigates are rolled out maybe once in a year or once in two years.”
The company is also diversifying in other areas including metro rail business, civil aviation, and energy storage products. However, BEL will continue to remain primarily involved in the defence business, Srivastava said.
He reiterated the company’s revenue growth guidance of 15% for FY23.
According to him, margins in non-defence business is lesser than those in the defence business. The guidance of 21-23% of Ebitda margin “is with a proper mix of difference in non-defense markets”, Srivastava said.