Bharat Electronics (BEL) reported healthy quarterly performance with revenue growth of ~2% YoY to Rs64.6bn and EBITDA margin expansion of 347bps YoY to 28.3%. FY23 order inflows came in at Rs202bn, translating to order book of Rs606.9bn (up 5.4% YoY). BEL’s order pipeline remains healthy for next two years with large orders expected in defence segment such as QRSAM, LRSAM, naval systems etc. and in non-defence segment such as Air Traffic Management System-ATMS, Homeland security, Batteries etc. Earlier management has guided that, it is confident to achieve revenue growth of 15-20% for next couple of years. We remain positive on long-term growth story of BEL given 1) strong order backlog & order pipeline 2) diversification in newer business verticals like, medical equipment’s, hydrogen fuel cell, EV batteries etc., 3) focus on export markets (Egypt, Malaysia etc.) and 4) govt’s focus on product indigenization.