You have won new orders from the Indian Army and the Defence Ministry for electronic fuses, etc. Help us understand how these orders are different from the earlier ones that you had bagged and overall, how is the pipeline looking for this one?
This order is for supply of electronic fuses for the Indian Army and this is for the next 10 years. We won a competitive tender. It has gone through the evaluation process by the Indian Army and that is how we got the order. It is around Rs 4,522 crore without taxes and Rs 5,300 crore with taxes.
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With these orders that you have surpassed the earlier sales guidance of Rs 20,000 crore and auto inflow at Rs 23,000 crore now. What is your new target for FY24? Are we looking at you touching Rs 30,000 crore?
We have already reached close to around Rs 23,200 crore, which is higher than the guidance we have given. The reason is some of the procurement processes have been fast-tracked by MoD. So, one or two more orders are there in the pipeline. I definitely envisage orders to be around Rs 25,000 crore plus but in these defence orders, now only three months are left out. It is very uncertain whether something will come this year or spill over to April. That we will come to know only by the end of March.
But elections being lined up, is that going to impact the decision-making a bit? What do you think could be the implication of the elections next year?
I do not think there should be a major slowdown. But yes, it will be processed as usual.
What about the supply disruptions owing to the ongoing Israel-Hamas war, which will delay the delivery of components, we assume?
Yes, we are facing supply chain constraints, especially after this Israel war has broken up. There are issues in supplies from Israel and some other sources. We are trying to sort it out, working with our OEMs. But yes, there is some impact we are facing. So, let us see. Though they are assuring that in a few months things will be back, but we are keeping our fingers crossed. Challenges are there, supply chain challenges. Semiconductor continues to be a challenge. Though there was easing up, there are devices where OEMs are putting long delivery times. Similarly, the impact of the Israel war is still there. So, we are working out to mitigate these challenges. Let us see.
Could you highlight the impact on the business margin as well as growth owing to the ongoing geopolitical tensions?
There may be impact on executions, but may not be on the margins. But yes, (14:46) impact on executions, but what will be the impact and how we are able to cope up and recover that will be known only in the fourth quarter when we complete the supplies.
And the government, as we understand, is working on a lot of initiatives to accelerate exports as well. How is the traction in the export market for you?
Exports, whatever we committed this financial year around $90 million, we will be able to achieve.Also talk to us about the non-defence space, metro rail projects, even EVs for that matter because EVs were one important thing for you just ahead of elections.
In non-defence, though we are diversifying in civil aviation field, rail and metro fields, some other areas also like cyber security, software as a business, homeland security, these are the areas where non-defence we are working. But since defence also is increasing, that growth is there, so our ratio of defence to non-defence will remain in the range of 85-15 or something.
Lastly, is your earlier guidance intact for FY24? The revenue growth guidance of 15% and margin guidance of 21% to 23%?
Our margin guidance is intact, we will be able to maintain that.
