Slide 1: Cover letter to NSE on analyst meet presentation
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Slide 2: Analyst Meet - 2022
Analyst Meet - 2022 Bharat Electronics Limited 30th Aug, 2022
Slide 3: BEL Overview
BEL Overview BHAfiArflFCrfiQNFCS Navratna PSU Office Network • Marketing Offices (New Delhi): National Marketing (Def), Civil Marketing (Non-Def) and International Marketing • Established in 1954 under Ministry of Defence • Overseas Offices: USA (New York), Singapore, Oman, Sri • R&D / Technology dr
Slide 4: Business Segments
Business Segments BHAMrflfCrfiQNTCS 1 Radar & Fire Control Systems 2 Weapon Systems 3 Communication Systems 4 Electronic Warfare & Avionics 5 Network Centric Systems 6 Anti-Submarine Warfare 7 Electro-Optics 8 Tank Electronics & Gun Upgrade 9 Home Land Security & Smar t Cities 10 Non-Defence Product
Slide 5: Areas of Diversification
Areas of Diversification BHAfiATFlFCrfiONFCS 1 Energy Storage Products 2 Unmanned Systems 3 Space Electronics & Systems 4 Solar Cells/Power Plants 5 Seekers & Missiles 6 Network & Cyber Security 7 Arms & Ammunitions 8 Railway / Metro Solutions 9 Software Solutions / Services 10 Composites Medical El
Slide 6: Research & Development (R&D)
Research & Development (R&D) BHAMTFlFCrfiONFCS • 55% Engineering Manpower deployed in R&D • ~78% Sales Revenue from Indigenous R&D • R&D investment: Rs. 1045 Crs during 2021-22 • Companies, Institutions, Academia and Experts/Consultants in different areas as Collaborative R&D Partners • CMMi Level-5
Slide 7: Expansion & Modernization
Expansion & Modernization BHAfiATFlFCrfiONFCS Plants / Centres: To address Manufacturing needs & Investments to address Diversification R&D Initiatives • Nimmaluru, AP : Advance EO Systems Manufacturing • Land in Devanahalli (Bengaluru): Space, Unmanned Systems, Solar, etc. • Palasamudram, AP: Weapo
Slide 8: Exports
Exports • Dedicated Marketing Group for Expor ts • Major products expor ted: • Achieved USD 33.30 Million during the year 2021-22. • Expor t Order acquired in 2021-22 – 179 MUSD Coastal Radar System, Communication • Total Expor t Order Book as on 01.08.2022 – 272 MUSD Equipment's, Data Link, Radar
Slide 9: Major Orders Executed in 2021-22
Major Orders Executed in 2021-22 BHA/?Ar£l£Cr#ON/CS Long Range Surface to Air Missile System Akash Missile System 8
Slide 10: Major Orders Executed in 2021-22
Major Orders Executed in 2021-22 BHA/?Ar£l£Cr#ON/CS AIR HUD QUAHTIR COMMAND HQ STRATIGIC LEVEL OPERATIONAL LEVEL Integrated Air Command & Control System Air Force Network (AFNET) 9
Slide 11: Major Orders Executed in 2021-22
Major Orders Executed in 2021-22 BHA/?Ar£l£Cr#ON/CS ROS/DAC/ROC/CC CSS Phase II INTEGRATED PERIMETER SECURITY SYSTEM (IPSS) 10
Slide 12: Major Orders Executed in 2021-22
Major Orders Executed in 2021-22 BtMfiATElFCrfiON/CS f I AW- Samyukta Upgrade (EW System) SHAKTI (EW System) 11
Slide 13: New Products/Sub-Systems Introduced in 2021-22
New Products/Sub-Systems Introduced in 2021-22 BHA/?AT£l£CT/?ON/CS • Laser Fence System. • IR Jammer for Active Tank Protection System. • Gimbal for Tethered UAV • Drainage Intrusion Detection System • Solid State Power Controller Cards (28V 16 & 32 channel) • Tactical server commercial and rugged v
Slide 14: Order Book
Order Book BHA/?AT£l£CT/?ON/CS Major Orders Received during 2021-22 • Avionics Package for LCA • Advanced EW Suite for Fighter Aircraft • Instrumented Electronic Warfare Range (IEWR) • CDR TI cum Day Light Sights • Electronic Voting Machines • RWR & MAWS for C-295 Aircraft • Dhanush Electronic Upgra
Slide 15: Major Projects planned during 2022-23
Major Projects planned during 2022-23 BHA/?AT£l£CT/?ON/CS • LRSAM (Long Range Surface to Air Missile) System • Akash Missile System (7 Sqdn) • Integrated Air Command & Control System • Electronic Voting Machines • AFNET • Thermal Imagers • Kerala Fibre Optic Network (K-FON) • Naval Equipments • Smar
Slide 16: Business Initiatives
Business Initiatives BHA/?AT£l£CT/?ON/CS Solar: MoU with NHPC for Solar Infrastructure Creation MGLD: Teaming Agreement (TA) with JSR Dynamics for Miniature Ground Launched Decoy Ammunition: Joint Development Agreement (JDA) with IIT-M for 125mm Ammunition and 80mm Rocket. Digital Agriculture: MoU w
Slide 17: Business Initiatives
Business Initiatives BHA/?AT£l£CT/?ON/CS Railways: Teaming Agreement (TA) signed with DMRC for Indigenous Auto Train Supervision System (i-ATS), Centralized Train Control (CTC), Train Management System (TMS), Super SCADA system Solar: Setting up of Solar Power plant using Solar Modules made up of Bi
Slide 18: Business Initiatives
Business Initiatives BHA/?AT£l£CT/?ON/CS Combat Vehicles: MoU with AVNL (Earlier HVF, Avadi) for Co- operation in Combat Armoured Defence Mobility Vehicle DIRCM EW System: TCA with Elbit System for Directed Infrared Counter Measure System (DIRCM) EW System for Air Platforms Inertial Navigation Syste
Slide 19: 'Make in India' Initiatives
‘Make in India’ Initiatives BHARATflFCrftON/CS • 1100 items uploaded on MoD’s Indigenization portal (Srijan). • EoIs for 81 items published under Make-II (BEL Projects), of which 54 items are in various stages of indigenization. • 193 items (BEL items) declared in Positive Indigenization Lists (PIL)
Slide 20: Outlook for the Future
Outlook for the Future BHA/?AT£l£CT/?ON/CS • BEL’s current year turnover is around Rs.3700 Cr & Order acquired during 2022-23 is around Rs. 1600 Cr (as on 31st July 2022) • BEL to focus on R&D, both in-house and collaborative Mode, for increased value addition and intellectual property creation • En
Slide 21: Outlook for the Future
Outlook for the Future BHA/?AT£l£CT/?ON/CS • Thrust on diversification initiative like Medical Electronics, Energy Storage Products including e-Charging Stations, Unmanned Systems, Space Electronics, Satellite Launch Vehicles, Solar Cells/Modules, Seekers and Missiles, Network & Cyber Security, Arms
Slide 22: BHA/?Ara£Cr/?ON/CS
BHA/?Ara£Cr/?ON/CS
Slide 23: Analyst Meet 30.08.2022
BHARATELECTRONICS ANALYST MEET 30.08.2022
Slide 24: Financial Highlights FY 2021-22
d/tecf Financial Highlights FY 2021-22 BHARATflfCr/tON/CS Turnover has increased to Rs. 15044 Cr from Rs. 13818 Cr, a growth of 8.87%. Profit Before Tax (PBT) has increased to Rs. 3158 Cr from Rs. 2935 Cr, an increase of 7.60%. Profit After Tax (PAT) has increased to Rs. 2349 Cr from Rs. 2065
Slide 25: Financial Highlights FY 2021-22
d/tecf Financial Highlights FY 2021-22 BHARATflfCr/tON/CS Cash & Bank Balances has increased to Rs. 7499 Cr from Rs. 5009 Cr. Net Worth has increased to Rs. 11984 Cr. from Rs. 10808 Cr. Book Value Per Share has increased to Rs. 49.18 from Rs. 44.36. Capital Expenditure amounting to Rs. 565 C
Slide 26: Performance
Performance TURNOVER (Rs. in Cr) 15,044 13,818 12,608 11,789 10,085 2017-18 2018-19 2019-20 2020-21 2021-22 4
Slide 27: How a Rupee Earned is Distributed
During FY 2021-22 HOW A RUPEE EARNED IS DISTRIBUTED Profit After Tax 15.61% Tax Provisions 5.38% Depreciation 2.53% Other Expenses (Net of Other Revenues) 3.29% Materials 59.17% Employee Benefits Expenses 14.02% 5
Slide 28: Expense Ratios
Expense Ratios MATERIAL CONSUMPTION (In %) 59.17% 56.36% 56.65% 54.69% 50.45% ÿ 2017-18 2018-19 2019-20 2020-21 2021-22 EMPLOYEE BENEFIT EXPENSE (Rs in Cr) 2,109 2,057 1,941 1,879 1,772 17.57% LJ 15.94% 16.32% 14.04% 14.02% 2017-18 2018-19 2019-20 2020-21 2021-22 Employee Cost Employee Cost to Turno
Slide 29: Operating Profit
Operating Profit EBITDA and EBITDA Margin trend (%) (Rs. In Cr) 3,309 3,181 2,862 2,730 2,000 24.28% 23.02% 21.65% 22.00% 19.83% 2017-18 2018-19 2019-20 2020-21 2021-22 7
Slide 30: Profitability
Profitability PROFIT BEFORE TAX (Rs. in Cr) 2935 3158 2703 2479 1948 2017-18 2018-19 2019-20 2020-21 2021-22 (Rs. in Cr) PROFIT AFTER TAX 2,349 1,927 2,065 1,794 1,399 2017-18 2018-19 2019-20 2020-21 2021-22 8
Slide 31: Turnover Ratios
Turnover Ratios Inventory to VOP (in days) (Rs. In Cr) 5567 4739 4955 4455 3963 179 136 130 133 117 2017-18 2018-19 2019-20 2020-21 2021-22 Trade Receivables to Turnover (in days) (Rs. In Cr) 6733 6552 6103 5050 5369 195 183 166 173 148 2017-18 2018-19 2019-20 2020-21 2021-22 9
Slide 32: Liquidity Ratio
Liquidity Ratio Current Ratio = Current Assets/Current Liabilities Current Ratio (Rs. In Cr) 1.52 1.44 1.46 1.41 1.39 2017-18 2018-19 2019-20 2020-21 2021-22 10
Slide 33: Return Ratios
Return Ratios (Rs. in Cr) Avg. Capital Employed Return on Capital Employed (%) 9721 8814 7899 6717 6267 37.90% 27.91% 30.14% 31.94% 30.13% 2017-18 2018-19 2019-20 2020-21 2021-22 ROCE = EBIT / Average Capital Employed 11
Slide 34: Return Ratios
Return Ratios (Rs. in Cr) Net Worth Return on Equity (%) 11984 10808 9853 9019 7761 21.37% 19.60% 18.03% 18.21% 19.11% 2017-18 2018-19 2019-20 2020-21 2021-22 Return on Equity = PAT / Net Worth 12
Slide 35: Financial Position
Financial Position CASH & BANK BALANCES (Rs. in Cr) 7499 5009 1557 739 884 2017-18 2018-19 2019-20 2020-21 2021-22 13
Slide 36: EPS & Dividend Distribution
EPS & Dividend Distribution EARNING PER SHARE (EPS) (in Rs.) 9.64 7.91 8.48 7.36 5.70 ÿ ÿ ÿ 2017-18 2018-19 2019-20 2020-21 2021-22 DIVIDEND DISTRIBUTION (Rs. in Cr) 1096 975 828 682 491 2017-18 2018-19 2019-20 2020-21 2021-22 14
Slide 37: Market Capitalization
Market Capitalization (Rs. in Cr) 75200 34092 30482 20839 17690 2017-18 u u 2018-19 2019-20 2020-21 As on 29.08.2022 15
Slide 38: R&D Expenses & CAPEX
R&D Expenses & CAPEX R&D EXP R&D EXP TO TURNOVER (%) Rs. in Cr 1,077 1045 988 947 873 9.80% 9.14% 7.51% 6.95% 6.32% 2017-18 2018-19 2019-20 2020-21 2021-22 Rs. in Cr CAPEX 674 634 565 513 480 2017-18 2018-19 2019-20 2020-21 2021-22 16
Slide 39: Share Holding Pattern for Last 2 Years
SHARE HOLDING PATTERN FOR LAST 2 YEARS 31.03.2022 31.03.2021 4% 4% 6% 8% 17% 11% 51% 51% 22% 26% GoI Mutual Funds Foreign Portfolio Investors Others Insurance Co’s 17
Slide 40: Order Book Position
Order Book Position BHAMTEIFCTRON/CS Rs. in Cr 60000 57570 53434 51798 51973 40115 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 18
Slide 41: Future Outlook
dftec! Future Outlook BHAfiAmFCTRON/CS Revenue Growth ≈ 15% EBITDA Margin ≈ 21% - 23% Order Inflow ≈ Rs. 20,000 Cr R&D Investment ≈ Rs. 1,000 Cr CAPEX ≈ Rs. 750 Cr Defense : Non Defense Business ≈ 80 : 20 19
Slide 42: Major Areas of Diversification
Major Areas of Diversification BEL is venturing into new business areas : - Energy Storage Products - Space Electronics & Systems - Arms & Ammunitions - Civil Aviation - Health Care Solutions - Railway/Metro Projects - Power Supply to Security Forces 20
Slide 43: Major Orders Received during 2021-22
Major Orders Received during 2021-22 Sl. Unit / Rs. in Project / Product No. SBU Cr. 1 Avionics Package for LCA EWA 1,868 Advanced Electronic Warfare (EW) suite for 2 EWA 1,689 fighter aircraft – D29 3 Instrumented Electronic Warfare Range (IEWR) HYD 940 4 CDR TI cum Day Light Sights for T-90 Tanks
Slide 44: Major Orders Executed during 2021-22
Major Orders Executed during 2021-22 Sl. Unit / Rs. in Project / Product No. SBU Cr. 1 Long Range Surface-to-Air Missile (LRSAM) ADSN 2,439 2 Akash Missile System (7 Sqdn) MS 2,212 Integrated Air Command and Control System 3 GAD NCS 823 (IACCS) GAD 4 AFNET 698 SCCS NS2, 5 CSS Phase II 405 SC & US 22
Slide 45: Major Orders Planned for Execution in 2022-23
Major Orders Planned for Execution in 2022-23 Sl. Rs. in Project / Product Unit / SBU No. Cr. Long Range Surface-to-Air Missile 1 ADSN 2,639 (LRSAM) 2 Akash Missile System (7 Sqdn) MS 2,085 Integrated Air Command and 3 GAD NCS 802 Control System (IACCS) MILCOM, SC&US, MR, 4 VVPAT 704 KOT, GAD NCS, P
Slide 46: BHAfiATEtecrfiON/CS
BHAfiATEtecrfiON/CS