Bharat Electronics Limited · NSE:BEL
Bharat Electronics — Analyst Meet 2019
35 slides from Bharat Electronics's conference presentation, Sep 16, 2019
Slide 1: Cover letter to NSE: Presentations made at Analysts Meet
HJYcT $o)cfg/PtcM BHARAT ELECTRONICS y R) To, TRtT ÿeicÿPlcHH tfÿ rr (WcT YTWR cfTT ÿRf, T5TT HWRj) National Stock Exchange of India Ltd. TTuftÿHT cbmldij : W, ÿTd 't/ÿft . 1, sÿlToh 3TTÿ7 fÿ7 Yte HMNKI, , - 560 045, WcT Exchange Plaza, Plot No. C/l, G Block, Bharat Electronics Limited «i isu (ÿ) (G
Slide 2: Analyst Meet - 2019 Bharat Electronics Limited
Analyst Meet - 2019 Bharat Electronics Limited 16th Sep, 2019
Slide 3: Overview
Overview BHAfiATELfCTPQN/CS Navratna PSU Manufacturing Network • Established in 1954 under MoD • R&D / Technology driven Company operating in competitive Defence Electronics area Panchkula Kotdwara • Manpower: 9612 Employees (as on 31.03.2019) Ghaziabad Subsidiary & JVs Navi Mumbai • BEL Optronics D
Slide 4: Business Segments
Business Segments BHARATEl£CTRON/CS 1. Radar 2. Missile System 3. Communication 4. Electronic Warfare & Avionics 5. Network Centric Systems 6. Anti submarine Warfare 7. Electro-Optics 8. Tank Electronics 8. Home Land Security 10 Civilian Products Multi product, Multi technology company – Diverse pro
Slide 5: Research & Development (R&D)
Research & Development (R&D) BHARAT£l£Cr/?ON/CS • 47% Engineering Manpower deployed in R&D • R&D investment: Rs. 1077 Crs during 2018-19 • CMMi Level-5 Certification for Software development • Largest Production Partner of DRDO • Patents Application Filed – 285, Patents Granted - 08 Blue Sky Researc
Slide 6: R&D Investment
R&D Investment BHAfiATflfCTfiON/CS Value in Rs Crores 1077 988 704 1-15 2015-16 2016
Slide 7: Expansion & Modernization
Expansion & Modernization World Class Manufacturing & Test Facilities 1 Super Components Facility 5 High Roof hangar for Radar & Antenna Integration 2 Test set up for missile system 6 Modern Production setup for Airborne applications 3 Secured manufacturing facility for EVM/ VVPAT 7 Near Field Test
Slide 8: Exports
Exports • Dedicated Business Unit & Marketing • Major products exported: Group for Exports • Coastal Surveillance System, CoMPASS, • Achieved USD 21.6 Million during 18-19 Advanced Composite Communication • Export Initiatives: System, Electro Mechanical parts etc. • Strategic alliances with global O
Slide 9: Major Orders Executed in 2018-19
Major Orders Executed in 2018-19 Integrated Air Command & Control System m nm own™ SflW8B6ir«l Electronic Voting Machine wvr Voter Verifiable Paper Audit Trail
Slide 10: Major Orders Executed in 2018-19
Major Orders Executed in 2018-19 BHARAT£l£Cr/?ON/CS Ground based Mobile Electronic Intelligence System Weapon Locating Radar Low Intensity Conflict Electronic Warfare System (LIC EWS)
Slide 11: Major Orders Executed in 2018-19
Major Orders Executed in 2018-19 BHARAT£l£Cr/?ON/CS Schilka Upgrade TROPO Upgrade L70 Gun Upgrade
Slide 12: New Products Introduced in 2018-19
New Products Introduced in 2018-19 • Real Time Information System for Indian Railways • Auto Fare Collection Gate (SWAGAT) • Drone Guard System • EO System for Home Land Security • Integrated Communication System for Indian Navy • Coastal Surveillance System for Seychelles • Fire Control System • Im
Slide 13: New Products Introduced in 2018-19
New Products Introduced in 2018-19 • Corner Shot Weapon System • Target Acquisition System for Man Portable Anti-Tank Guided Missile (MPATGM) • IFF System for MRSAM Phase II • Virtual Reality Simulator • Electric motor for T-90 Tank Stabilizer • Battery Multi-Function Radar vehicle and Battery Surve
Slide 14: Order Book
Order Book Major Orders Received during 2018-19 • Long Range Surface to Air Missile for P17A • Smart City Business - North East States & Agra, Integrated perimeter Security System (IPSS) for Air Force, Kerala Fibre Optic Network (K-Fon) • Home Land Security System (Naval Airfield Integrated Security
Slide 15: Major Projects planned during 2019-20
Major Projects planned during 2019-20 • Integrated Air Command & Control System • LRSAM (Long Range Surface to Air Missile) • Smart City Business • Upgrade of Communication Equipment • Ground Based Mobile Electronic Intelligence System • Naval Equipment • Radars • Avionics Package for LCA • Low Inte
Slide 16: Business Initiatives
Business Initiatives • Expansion of geo-spatial reach, full scale operationalization of Overseas Marketing Offices in Vietnam, Myanmar, Sri Lanka and Oman. Singapore and New York offices expanded with marketing cell. • Regional Product Support Centers made operational at Ten new locations. • BEL acq
Slide 17: Business Initiatives
Business Initiatives • BEL-Bengaluru received prestigious “Business Excellence Award” and “Role Model Organization” recognition from jury of CII EXIM Bank Award for Business Excellence. Other BEL Units, namely Ghaziabad, Chennai and Machilipatnam received Platinum level recognition. • Three of our U
Slide 18: 'Make in India' Initiatives
‘Make in India’ Initiatives BHARAT£l£Cr/?ON/CS • BEL is focusing more on core areas and R&D to retain IP, all non-core areas are being outsourced to Indian Industries including MSMEs • Outsourcing and Vendor Development Policy has been released • Make-II Procedure has been implemented with effect fr
Slide 19: Outlook for the Future
Outlook for the Future • BEL to focus on in-house R&D for increased value addition. • Thrust on Exports by expanding geo-spatial reach & partnerships. • Diversify in non-defence opportunities to drive BEL’s growth. • Focus areas: Space Electronics, Solar, Homeland Security, Smart Cards , Telecom, Ra
Slide 20: BHARAT£l£Cr/?ON/CS
BHARAT£l£Cr/?ON/CS
Slide 21: Analysts Meet-2019
m2 ~ Dore SARNIA BHARAT HECTROMICS SA kA ALYSTS MEET-2019 16‘ September, 2019
Slide 22: Financial Highlights 2018-19
Financial Highlights 2018-19 Turnover has increased from ` 10084.84 Crores in 2017-18 to ` 11789.22 Crores in 2018-19, a growth of 16.90%. Profit Before Tax (PBT) has Increased from ` 1947.84 Crores in 2017-18 to ` 2703.19 Crores in 2018-19, an increase of 38.78%. Profit After Tax (PAT) has In
Slide 23: Financial Highlights 2018-19
Financial Highlights 2018-19 Total dividend payout of ` 3.40 per share against ` 2.00 per share for 2018-19.The total dividend outlay for 2018-19 is ` 828.44 Crores (including Dividend distribution tax ` 998.72 Crores). Book Value Per Share has Increased from ` 31.85 in 2017-18 to ` 37.01 in 201
Slide 24: Gross Turnover, Orders on Hand, PBT and PAT
GROSS TURNOVER (` in Crores) ORDERS ON HAND (as on 31st March) (` in Crores) 11,789 57600 51798 10,085 8,825 6,695 7,541 40242 32022 21617 2014-15 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 CURRENT (` in Crores) PROFIT BEFORE TAX (PBT) PROFIT AFTER TAX (PAT) (` in Crores) 1927 2
Slide 25: Material Consumption and Employee Benefit Expense
BHARAT£l£Cr/?ON/CS MATERIAL CONSUMPTION MATERIAL CONSUMPTIONTO VOP TO VOP (In %) 56.43% 55.45% 54.99% 53.21% 51.00% 2014-15 2015-16 2016-17 2017-18 2018-19 (` in Crores) EMPLOYEE BENIFIT EXPENSE TO TURNOVER 1,879 1,772 1,548 1,264 1,257 18.88% I B 17.55% 17.57% 16.67% 15.94% 2014-15 2015-16 2016-17
Slide 26: How a Rupee Earned is Distributed
2018-19 HOW A RUPEE EARNED IS DISTRIBUTED Profit After Tax; 16.17% Tax Provisions; 6.51% Depreciation; 2.65% Materials; 51.00% Other Expenses (Net of Other Revenues); 7.91% Employee Benefits Expense; 15.76% 6
Slide 27: Inventory and Trade Receivables
BHARAT£l£Cr/?ON/CS INVENTORY TO VOP (` in Crores) 4905 4739 4455 4177 3427 206 205 188 180 136 TRADE RECEIVABLES TO SALES (` in Crores) 2014-15 2015-16 2016-17 2017-18 2018-19 Inventory Inventory in No. of days to VOP (DPE) 5369 VoP = Net turnover – Changes in 5050 Inventories of FG, WIP & Scrap 435
Slide 28: Return on Capital Employed, Return on Equity, EBITDA
RETURN ON CAPITAL EMPLOYED RETURN ON EQUITY ( in %) ( in %) 20.61% 21.37% 19.57% 20.14% 18.03% 17.01% ÿ 14.80% 14.55% 14.64% 14.14% 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Return on Capital Employed = PAT / Capital Return on Equity = Profit After Tax / Net Wor
Slide 29: Earning Per Share and Dividend Distribution
BHARAT£l£Cr/?ON/CS EARNING PER SHARE (EPS) (in `) CASH EARNING PER SHARE (in `) 7.91 9.21 o 6.03 5.70 6.89 6.73 4.95 5.67 <0> 4.42 5.06 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Cash Earning Per Share = (PAT + Depreciation) / No. of Shares DIVIDEND DISTRIBUTION
Slide 30: R&D Expenses and Capex
R&D EXPENSES TO TURNOVER (` in Crores) 9.79% 9.14% 9.34% 8.81% 8.20% 988 1077 704 777 549 2014-15 2015-16 2016-17 2017-18 2018-19 R&D Expenses R&D Expenses to Turnover CAPEX (` In Crore) 674 612 634 525 383 2014-15 2015-16 2016-17 2017-18 2018-19 10
Slide 31: Price Earning Ratio, Book Value, Market Capitalisation
PRICE EARNING RATIO ( in %) BOOK VALUE PER SHARE (` in Crores) 25.27 24.73 26.00 24.94 37.43 37.01 32.85 33.62 31.85 11.80 7885 8984 7509 7761 9019 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Net Worth Book Value Per Share MARKET CAPTALISATION (` In Crores) 35012
Slide 32: Share Holding Pattern as on 31.03.19
SHARE HOLDING PATTERN AS ON 31.03.19 INSURANCE COMPANIES, 4.12% OTHERS, 11.22% GOVERNMENT OF INDIA + NOMINEES, 58.83% FOREIGN INSTITUTIONAL INVESTORS, 7.49% MUTUAL FUNDS & UTI, 18.34% Others includes: Corporate Bodies(2.75%),NRI's(.58%) ,Banks & FI's(.41%) 12
Slide 33: Quarterly Performance
QUARTERLY PERFORMANCE 13
Slide 34: Financial Highlights for 1st Quarter 2019-20
Financial Highlights for 1St Quarter 2019-20 (` in Crores) Particulars 2019-20 2018-19 Total Income from Operation (Net) 2041.98 2077.84 Profit for the period before tax (PBT) 290.39 250.21 Profit for the period after tax (PAT) 204.73 179.73 Earning Per Share (EPS in `) 0.84 0.74 14
Slide 35: BHARArElfCTRON/CS
BHARArElfCTRON/CS