BEL shares in focus on JV with France’s Safran Electronics. All you need to know

Shares of Bharat Electronics Limited (BEL) are likely to be in focus today (February 16) after the company’s Board approved the signing of a Joint Venture Agreement (JVA) with Safran Electronics and Defence (SED), France, for Project Hammer.

The proposed company will operate a “Center of Excellence” and act as a technology-cum-teaming partner for the manufacturing, supply, maintenance and repair of the Guidance Kit (GK) of the HAMMER Weapon System. The primary end users will be the Indian Air Force and the Indian Navy, though other end users in India may be mutually agreed upon.

Under the agreed structure, the equity will be split 50:50 between BEL and SED. The Board of the JV will comprise four directors, with two nominated by BEL and two by SED. The Chairman will be appointed by the nominees and will not have a casting vote.


The company will be incorporated with an initial authorised share capital of Rs 1,00,000 (1,000 equity shares at Rs 100 each). This may be increased up to Rs 10,00,00,000 or any other amount based on requirements. The equity will be divided equally between BEL and SED.

BEL and SED have agreed to incorporate a Private Limited Company under the Companies Act, 2013. The registered office and principal place of business will be located in Pune or any other mutually agreed location.

BEL Q3 snapshot

BEL reported a consolidated net profit of Rs 1,580 crore for the quarter, compared with Rs 1,312 crore in the same period last year, reflecting a year-on-year (YoY) growth of 21%.

Revenue from operations increased 24% YoY to Rs 7,154 crore, according to a regulatory filing.

On a sequential basis, net profit was higher than Rs 1,287 crore reported in the September quarter. Revenue from operations also rose from Rs 5,946 crore in the previous quarter.

Including other income of Rs 139 crore, total income for the quarter stood at Rs 7,292 crore, up from Rs 5,957 crore in the year-ago period.

On the expenditure front, employee benefit expenses rose to Rs 820 crore from Rs 672 crore a year earlier, while other expenses increased to Rs 1,355 crore from Rs 1,109 crore in the corresponding period last year.

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