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Bharat Dynamics Ltd.

BSE: 541143 Sector: Engineering
NSE: BDL ISIN Code: INE171Z01018
BSE 00:00 | 03 Oct 875.35 1.05
(0.12%)
OPEN

874.30

HIGH

887.00

LOW

862.90

NSE 00:00 | 03 Oct 875.90 1.15
(0.13%)
OPEN

868.00

HIGH

887.15

LOW

862.05

OPEN 874.30
PREVIOUS CLOSE 874.30
VOLUME 47276
52-Week high 978.90
52-Week low 368.10
P/E 27.46
Mkt Cap.(Rs cr) 16,043
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 874.30
CLOSE 874.30
VOLUME 47276
52-Week high 978.90
52-Week low 368.10
P/E 27.46
Mkt Cap.(Rs cr) 16,043
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bharat Dynamics Ltd. (BDL) - Chairman Speech

Company chairman speech

Dear Shareholders

It is my privilege in welcoming you all to the 51" Annual General Meeting of yourCompany. I take pleasure in sharing with you the 51" Annual Report of this dynamicCompany built by the dedication commitment and perseverance of the men and womenassociated with the Company over five decades.

At the outset I would like to extend my gratitude to each one of you for yourcontinued support and investment in BDL. I am proud of what we've accomplished together inthe past years and I am even more optimistic about the opportunities ahead.

The Covid -19 pandemic has seriously affected the global economy and with respect toyour Company the supply-chain and operations were badly impacted. The situation hasthrown multiple challenges for everyone. The Government of India's initiatives to createan 'Atmanirbhar Bharat' and the policies created by the Government during the last yearhave generated a congenial ecosystem to fight the pandemic. Your Company is workingrelentlessly to face these challenges and transform them into opportunities for growth.

I take this opportunity to share the performance highlights during the year and futureoutlook for the Company.

FINANCIAL AND PERFORMANCE HIGHLIGHTS OFTHE YEAR:

During the year under review your Company has achieved a revenue from operations ofT1913.76 Crore and profit after tax (PAT) of T257.77 Crore. Covid-19 pandemic andconsequent lockdown has led to severe disruptions affecting production sales and profitduring the current reporting period. Therefore the performance of the Company for thisperiod is not being compared with the corresponding period or any period of previous year.

The order book position of your company as on 01 Apr 2021 is about T8386 Crorecomprising mainly Akash MRSAM ATGMs and Varunastra.

I take pride to inform that your Company continues to maintain a consistent trackrecord of dividend payment. Your Board has recommended a final dividend of TO.65 perequity share of T10/- each amounting to Til.91 Cr. It gives me great pleasure in informingthat your Company has paid an interim dividend of T6.70 per share in March 2021. The totaldividend for the FY 202021 declared by the Company is T7.35 per share (face value ofT10/-each).

PERFORMANCE VIS-A-VIS MoU:

In terms of the Memorandum of Understanding (MoU) signed with the Department of DefenceProduction Ministry of Defence (MoD) Government of India your Company is likely to berated as "Very Good" for the year 2019-20 and is under evaluation for the year2020-21.

SIGNIFICANT ACHIEVEMENT:

1) Highlights:

> Atmanirbhar Bharat: In response to the clarion call given by the Hon'ble PrimeMinister for creation of "Atmanirbhar Bharat" BDL observed 'Atmanirbhar Bharat'week from 7"’ Aug to 14:h Aug 2020. During the week followinginitiatives were taken by the Company:

a. Inauguration of Surface-Mount Technology & 'High Performance Computingfacility'.

b. Laying of foundation stones for setting up Seeker Facility Centre and establishingWarhead Production facility by Hon'ble Raksha Mantri at an event held virtually.

c. Product Launch of Konkurs Missile Test Equipment (KMTE) & Konkurs Launcher TestEquipment (KLTE) indigenously designed and developed by BDL by Hon'ble Raksha Mantri atan event held virtually.

d. Laying of foundation stone by Secretary Department of Defence R&D and ChairmanDRDO for establishing High Temperature Carbon Composite manufacturing facility at an eventheld virtually.

V Azadi ka Amrit Mahotsav:

As a part of year-long celebrations of 75 years of Independence and as per thescheduled dates B DL has conducted the following events during the week 26 Mar 2021 to 01April 2021.

a) "Freedom March" wherein. War Veterans serving officers from Armed Forcesalong with senior executives of BDL participated.

b) Conducted Webinar on Indigenization potential for Vendors for ensuring a AtmanirbharBharat.

c) A webinar with MSME vendors focussing on conceptual understanding of GovernmentRules Regulations and benefitsto MSMEs

d) A special drive for vendor registration for MSM E SC/ST Entrepreneurs

e) An E-Book on "BDL-A journey towards Atmanirbharta" released by Secretary(Defence Production) Department of Defence Production Ministry of Defence.

> Secretary Department of Defence R&D and Chairman DRDO Flagged off the firstVarunastra the Heavy Weight Torpedo being delivered to the Indian Navy at a ceremonyheld at BDL Vishakhapatnam on 21 Nov 2020.

> Hon'ble Raksha Mantri handed over the ASTRA (Mk-I) Missile to Chief of Air Staffat DRDO awards distribution function held on 18 Dec 2020. BDL is involved in integrationand testing of missile.

> CCS clearance has been accorded from Government of India for export of AkashWeapon System (AWS) to nine friendlyforeign countries.

> To support Covid Vaccination program BDL has handed over 96 nos of Deep Freezersworth Rs..0.60 Cr to Commissioner Health & Family Welfare Telangana State Govt on 18Feb 2021.

> Products Launch: BDL launched two new products during Aero India - 2021 -the "Dishani" and "Garudastra" in the presence of Hon'ble RakshaMantri. This is in addition to the new products viz. KLTE & KMTE launched earlierduring 'Atmanirbhar Bharat' Week Celebrations held in Aug 2020

2) New Orders: During the year B DL has bagged new orders worth Rs.2803 Cr(including taxes) and has further strengthened the existing order book position. Some ofthe significant orders received during this year includes Anti-Tank Guided Missiles orderworth about T1820 Crore and Surface to Air Missiles order worth about Rs.793 Crore.

3) Projects in Pipeline:

In addition to the new orders received in the financial year several new orders arealso in pipeline which are at various stages of progress. The major orders expected to bereceived in FY-2021-22 includes Akash Missiles for IAF Akash 3 d & 4hregiment for Army Astra Weapon System & Konkurs-M Missiles. The Company ispursuing for placement of orders expeditiously.

BDL has also received from Indian Navy a project sanction order for development andmanufacture of "Mobile Target Emulator 5" under Make-11. The prototype is beingdeveloped by your Company and once developed it is expected to fetch a big business foryour Company.

4) New Partners in pursuit of Technology Upgradation:

Technology Upgradation has always been an area of priority of your Company in order tokeep pace with the current trends in the global defence industry. In pursuit of this yourCompany has entered into MoU /LAToT/Teaming Agreement with various National/lnternationalDevelopment Agencies/Original Equipment Manufacturers (OEMs).

BDL has participated in the Aero-lndia-2021 exhibition held at Bangalore during 03 Febto 05 Feb 2021 and displayed its products. MoUs were signed during the exhibition asdetailed below:

• MoU with Naval Group France & Naval Group India and MoU with RafaelAdvanced Defence System Ltd (Naval Division) Israel to manufacture Under Water Weapons.

• Teaming Agreement with Thales UK for indigenous manufacture of STAR5TREAKMissiles in India with the TransferofTechnologyto BDL.

• MoU with ROXEL France for establishing propellant manufacturing facility inIndia.

• MoU with STE "SPETSTECH NOEXPORT" Ukraine for joint developmenttransfer of technology (TOT) and joint manufacturing of various missile systems includingoptical sight as well as repair refurbishment and life extension of existing missilesstocks in India.

• BDL & MBDA France/UK have entered into an offset agreement following an MoUfor establishment of Final Assembly Integration and Testing in India of ASRAAM &Mistral Missiles. IAF has a requirement of these missiles. The establishment of thefacility in India will result in integration capability of these two missiles within thecountry which will be utilised by MBDA & BDL to deliver missiles to the IAF as well asthe Global supply requirements of MBDA in future.

5) New infrastructure:

Your Company has taken several initiatives in setting up new infrastructure facilities.During the year under review your Company has commenced the operation of "Surface -Mount Technology" facility and "High Performance Computing" facility'

6) Technical Breakthroughs: Your Company has made certain significant breakthroughsduring the year. Some of these include:

• As a part of the User Trial Order from DRDL BDL Team has successfullyintegrated Is' batch of ASTRA missiles at DRDL and handed over to the projectin the 2nd week of July 2020.

• The Warhead Confirmatory Trial of NAG missile was successfully conducted on 21Oct 2020. BDL team was involved in Integration Checkout and assembling of Seeker and PreCurser.

7) Quality Systems:

The products manufactured by the Company should perform accurately as single shotdevices and quality of the product is the most important criteria. As such these productsrequire stringent Quality standards. In pursuit of this objective your Company has alwaysbeen producing the products of the highest quality standards. As you are aware theproduction Units in Kanchanbagh and Bhanur units are certified with InternationalAerospace Quality Management Standard AS 9100D.

The Information Technology Division (ITD) is certified with ISO-1 EC 27001-2013Information Security Management Systems (ISMS).

In addition all the three units have been certified to ISO 14001:2015 EnvironmentManagement System (EMS).

8) Research and Development (R&D):

Your Company is continuously engaged in new product development & up-gradation ofexisting products to meet customer requirements. As part of it your Company's Design& Engineering division is focusing on following projects:

a) Amogha-lll:

BDL has designed and developed Amogha-lll a 3rd Generation man-portablefire-and-forget AntiTank Guided Missile. A project sanction order has been received fromIndian Army and D&E team of your Company is working on the prototypes to be offered toIndian Army for validation trials as per the project sanction order.

b) The D&E team is also working on next generation ATGM which is currently atthe initial stages of development. It is expected that a significant development of thisATGM will be achieved in FY-2021-22

9) Corporate Governance:

A well laid down systems of your Company ensured that relationship between the Boardits shareholders and other stakeholders is seamless. The principles policies and definedresponsibilities as well as accountabilities enables the Company to have the perfect meansof attaining the objectives and systems of monitoring performance.

Your Company's activities are monitored by several external agencies like StatutoryAuditors Comptroller and Auditor General of India CVC MoD (Dept of Defence Production)etc.

I am glad to inform that your Company has been rated consistently as"Excellent" by MoD in the Corporate Governance category which itself is atestimony for its established mechanisms relations regulations and processes by which itis governed.

10) Corporate Social Responsibility and Sustainability Development:

As always your Company is committed to social responsibility. We have undertakenvarious programmes and projects towards integrating our social and business goals and ina sustainable manner. During the year an amount of Rs.1540.70 lakhs has been spent on CSRactivities. Your Company has taken up various programmes for fulfilment of its socialresponsibilities under CSR activities by adopting villages developmental aspirationaldistricts Swachh Bharat skill development etc. Your Company continues to carry out itsgood work in backward/ underdeveloped areas in Andhra Pradesh and Telangana states as partof CSR activities.

FUTURE OUTLOOK:

Your Company will witness a high growth in the coming years. The order book position ispicking up and we are further able to consolidate our orders which are in various stagesof finalization.

The negative list of imports (now redefined as "positive list "forindigenization) released by the Govt includes several of the BDL's products and this willcreate an opportunity to get orders for these products from the Indian Armed Forces in theensuing years.

The export market has also opened up and BDL's product like Akash Weapon Systems havegenerated lot of interest from potential buyers abroad. BDL is getting leads for export ofthe missile from about nine countries. In addition to domestic market BDL is also lookingup to the foreign customers to consolidate the order books of the Company as well asbecome a global exporter of missiles system which is a first of its kind. Apart fromAkash and Light Weight Torpedo your Company is also offering the Air to Air Missiles Airto Surface Weapons ATG Ms Heavy Weight Torpedoes and Counter Measure Systems forexports.

I am sure that the new policy initiatives of the Govt will create a strong base for aself-reliant India specially with respect to defence needs of the country.

Further BDL intends to increase R&D activities in association with DRDO andcontinue to have joint-development programs. BDL is also exploring various businessopportunities with foreign OE Ms and towards this BDL has signed MoUs with the foreignOEMs during the year under review. BDL believes that development of new products willenable the Company to diversify its offerings and mitigate product dependencies. It hasestablished the missile development group with the objective to design and developmissiles and also strive to develop Artificial Intelligence based products.

ACKNOWLEDGEMENT:

We will continue to pursue global standards and I am confident that the Company willachieve many more milestones. We are confident to attain all round success with thecontinued support and guidance of all our stakeholders.

I take this opportunity to place on record my sincere thanks and gratitude to theGovernment of India particularly Ministry of Defence DIPAM State Governments ourvalued Customers Inspection Agencies Auditors Vendors other authorities and agenciesthat provide unstinted support. I convey my appreciation to my colleagues on the Board fortheir invaluable contribution in strengthening the Company. I express my specialthankfulness to the investors and shareholders for their trust confidence and sustainedsupport to the Company. On behalf of entire BDL family I assure you that your Companywill continue to put tireless efforts and commitment to fulfil your expectations.

Jai Hind!!!
Date: 21 June 2021 Cmde Siddharth Mishra(Retd)
Place: Hyderabad Chairman & Mangaing Director
DIN:08367035

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