Rs 75,705 Crore Order Book: This Indian Defence Company and Israel Aerospace Industries Form Joint Venture to Support MRSAM System in India!
The company’s shares have delivered an impressive return of over 330 per cent in the past 3 years.
The Ministry of Corporate Affairs (MCA) has approved the incorporation of BEL IAI AeroSystems Private Limited on September 25, 2024. This new joint venture was formed between Bharat Electronics Limited (BEL) and Israel Aerospace Industries (IAI), Israel.
The venture, with an authorized share capital of Rs 8.2 crore and a paid-up share capital of Rs 4.1 crore, is aimed at providing product support, including repair, maintenance, and related services for the Medium-Range Surface to Air Missile (MRSAM) system used in India. The JV does not fall under related party transactions, and neither the promoter group nor the group companies have any prior interest in the entity. However, it will now be considered a related party to BEL.
The joint venture has received necessary approvals from the Ministry of Defence, India, and Israel’s Committee of Ministries for Social & Economic Affairs. BEL holds a 40 per cent stake in the company, and it will operate both in India and Israel.
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On Friday, the shares of Bharat Electronics Limited closed at around Rs 293.35 per share on the BSE. The company’s current market capitalization stands at Rs 2,14,432 crore. Additionally, the shares have delivered an impressive multibagger return of over 110 per cent in Just 1 Year.
As per the Quarterly Results, in Q1FY25 Bharat Electronics Limited recorded a revenue of Rs 4244 crore compared to Rs 3533 crore. The operating profit stood at Rs 948 crore. The net profit stood at Rs 791 crore compared to a profit of Rs 539 crore. Looking at the annual performance, the company generated a revenue of Rs 20268 crore in FY24. The operating profit for FY24 was Rs 5051 crore with an operating profit margin of 25 per cent. The company reported a net profit of Rs 3985 crore in FY24 compared to Rs 2986 crore in FY23.
Disclaimer: The article is for informational purposes only and not investment advice.