India’s transformation, from rural landscapes to bustling metropolises, is fueled not just by ambition, but by the invisible hand of electrical engineering components. These, often unnoticed, form the backbone of our nation’s progress.
The electricity that illuminates our houses, propels our industries and keeps our cities humming doesn’t simply appear at the flick of a switch. Behind the scenes lies a complex symphony of meticulously crafted electrical engineering components, playing a vital role in India’s growth and development.
Companies like Bharat Bijlee are the conductors of this electrical orchestra. With a rich heritage and commitment to quality, they manufacture transformers, electric motors and other critical components that keep India’s infrastructure and Industries humming.
With its continued efforts Bharat Bijlee showed a great result in the current year and as a result it’s share price increased from 1445.9 rupees to 3306 rupees from the past year with an increase of 128.64%. Will it continue its growing momentum? Come let’s learn more about the firm.
Industrial overview Of Bharat Bijlee
The electrical engineering industry in India is highly diversified, encompassing various segments like transformers, motors, industrial automation systems, turnkey project execution, and specialized machinery manufacturing. The transformer segment caters to the power transmission and distribution needs, with players operating in both tendered and direct sales channels. However, flat demand trends over the past decade and intensifying competition from new entrants have led to pricing pressures.
The motor business manufactures electric motors across different capacities for industrial applications. While geographic expansion and strengthening distribution networks remain key focus areas, volatile raw material costs and the entry of new competitors pose challenges. The industrial automation segment provides solutions like drivers, IoT platforms for predictive maintenance and productivity enhancement.
This vertical is also tapping into the emerging opportunities in e-mobility with EV motor and drive system offerings. The turnkey projects business executes substation and electrification projects, with recent growth driven by gas insulated switchgear installations. Specialized machinery like gealess systems and servo motors also constitute a part of the industry, though facing competition from low cost imports, particularly from China.
Overall, the industry is poised to benefit from India’s projected robust economic growth, driven by the government’s massive capital expenditure push, private corporate capex revival and the country’s infrastructure upgrade agenda. Increasing investments across renewable energy, industrial expansion, metro/rail projects and overall grid strengthening are expected to bolster demand for transformers, motors, automation solutions and turnkey services.
However, key challenges persist in the form of managing volatile commodity prices, supply chain disruptions leading to component shortages, intense competition from domestic players and low cost imports and the constant need for product innovation and cost optimization to maintain profitability and competitive edge across various segments.
Company overview Of Bharat Bijlee
Bharat Bijlee was established in 1946 and headquartered in Mumbai. It is a leading Indian electrical engineering company. Renowned for their transformers and electric motors, they cater to power and industrial sectors. Their offerings include power transformers, switchyards, electric motors, drives & automation systems and permanent magnet technology machines.
With a state of the art manufacturing plant and a commitment to quality, they serve a wide range of industries including power, refineries, steel and railways. The company has an extensive sales and service network across India and International markets. Bharat Bijlee has its manufacturing facility in Airoli, Navi Mumbai. They operate in two business segments which include power systems and industrial segments.
The power system segment contributed a net profit of 4911.26 lakh an increase of 62.56% compared to the previous year which accounted for 3021.19 lakh rupees. The industrial segment contributed a net profit of 11871.72 lakh an increase of 24.22% compared to the previous year of 9556.92 lakh rupees. Bharat Bijlee got listed in Indian stock exchanges on 24th of November 2006.
Financials Of Bharat Bijlee
| FY 2023 | FY 2022 | FY 2021 | FY 2020 | |
|---|---|---|---|---|
| Revenue (in crores) | 1,418.50 | 1,265.74 | 731.05 | 928.73 |
| Net profit (in crores) | 83.22 | 55.58 | 26.05 | 45.62 |
| ROE | 6.65% | 5.30% | 3.02% | 6.05% |
| ROCE | 8.80% | 7.52% | 5.02% | 9.36% |
In FY 2023 revenue of the firm increased by 12.07% from 1,265.74 crore in FY 2022 to 1418.5 crore in FY 2024. During FY 2023 the net profit of the firm also increased by 49.73% from 55.58 crore in FY 2022 to 83.22 crore in FY 23. The increase in revenue and net profit occurred because of an increase in sale of products from both of its segments, industrial and power systems and raw material cost.
Analyzing a span of three years, encompassing FY 2021 to FY 2023, the company displayed a Compounded annual growth rate (CAGR) of 15.16% in revenue. In FY 23, Bharat Bijlee maintained an acceptable financial metrics with a Return on Equity (ROE) of 6.65% and Return on Capital Employed (ROCE) 8.80%.
Future Plans Of Bharat Bijlee
Bharat Bijlee is targeting the emerging data center market and industrial business and plans to capitalize the government’s push towards renewables and power sector reforms. The company also plans to expand their geographical reach and strengthen their channel network in the upcoming years with continued cost optimization efforts.
Bharat Bijlee has also made plans to carefully monitor the challenges like rising raw material costs, metal price volatility, currency fluctuations. They wanted to capitalize on strong order booking, including large orders and consolidate presence in Gas Insulated Switchgear (GIS) substation space
Bharat Bijlee wants to grow e-mobility solutions in line with the government’s zero emission vision and scale industrial IoT solutions for predictive maintenance and production monitoring. They also want to develop smaller range servo motors for industries like textiles, packaging and printing. In the upcoming year Bharat Bijlee wants to counter the Chinese players from competition margin.
Conclusion
Bharat Bijlee’s established presence and proven track record solidify their position as a key player in India’s electrical engineering landscape. Their commitment to quality and a diverse product portfolio catering to power and industrial sectors have likely contributed to their recent revenue growth.
Looking ahead, Bharat Bijlee’s focus on research and development positions them well to capitalize on the future trends. Whether it’s advancements in energy efficiency or the rise of smart grids, their ability to adapt and innovate will be crucial for maintaining their market edge.
By continuing to deliver reliable and cutting-edge electrical solutions, Bharat Bijlee is poised to be a driving force in India’s journey towards a robust and sustainable electrical infrastructure. What would be your view on Bharat Bijlee’s performance? Will you bet on it? Do share your thoughts in the comments below.
Written by Pavunkumar V M
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