BEL and AAI join hands for co-operation in Civil Aviation industry

Navratna Defence public-sector undertaking, Bharat Electronics Limited (BEL) signed a memorandum of understanding (MoU) with Airports Authority of India (AAI) on Tuesday.

This agreement is expected to give a major lift to the civil aviation industry in the coming years. It would also offer a common platform for both the companies to work together and support each other in addressing the evolving global opportunities in the airport business, including those in Asia Pacific region. This MoU would provide for the synergy of capabilities of both the organisations in their particular domains.

Talking about Atmanirbhar Bharat, Chairman of AAI has mentioned that the manufacturing of communication, navigation and surveillance (CNS) equipment in India will reduce the cost significantly and also, help in saving the foreign exchange outflow.

On the order book front, the company has a healthy order book worth Rs 51,973 crore as on April 01, 2020 as it acquired orders worth Rs 13,200 crore during FY20. Going ahead, for FY21, the company is expecting major orders for electronic warfare (EW) systems, avionics packages for light combat aircraft, smart city business and spares/services.

In the recent quarter (Q4FY20), BEL has posted robust financial numbers. The consolidated revenue for the quarter came in at Rs 5,816.77 crore as against Rs 3,899.28 crore in the corresponding quarter last year, registering a 49.2 per cent YoY increase.

EBITDA for the quarter grew by 56.7 per cent YoY to Rs 1,493.96 crore as against Rs 953.21 crore in the corresponding quarter last year, with a corresponding margin expansion of 124 bps. EBITDA margin for the quarter stood at 25.7 per cent. PAT for the quarter came in at Rs 1,038.92 crore as against Rs 590.58 crore in the corresponding quarter last year, with a YoY increase of 75.9 per cent.

Looking at the return history, the stock has delivered a significant return of 39 per cent in the last three months.