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    We are confident to cross Rs 10,000-crore revenue mark in this fiscal: MV Gowtama of Bharat Electronics

    Synopsis

    "Our drivers for good revenue growth this year are our ability to design indigenously quality manufacture and supply large number of electro-optic products to armour," Gowtama said.

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    "I am very confident and we are working to cross the Rs 10,000 crore mark in 2017-18," Gowtama said.
    In a chat with ET Now, MV Gowtama, CMD, Bharat Electronics said talked about company's growth strategy, reasons behind contraction in margins and recent defence deal with an Israeli company.

    Edited excerpts


    What has been your growth contributer this year?
    Our drivers for good revenue growth this year are our ability to design indigenously quality manufacture and supply large number of electro-optic products to armour. Also the weapon locating radar partnered with DRDO. These contributed for an excellent growth for the company this year.

    Is the Rs 10,000-crore revenue mark now idealistic for this financial year, do you look at crossing that figure really?

    I am very confident and we are working to cross the Rs 10,000 crore mark in 2017-18.

    Your revenues are growing steadily, but margins have contracted. What is your outlook for this financial year?

    Margin are getting contracted for two reasons. The first reason is the business is shifting from equipment supply to turnkey solution providing wherein large amount of money comes from infrastructure and invariably the delays in infrastructure eat away the margins there. The second issue that troubles us in getting good margins is the growing competition in the defence sector. The government is pushing for fair competition with private sector and certainly we will not be able to demand margins when we are in a competitive business.

    Could you give us a little more details on your $630-million deal with the Israeli defence system for the Indian Navy?

    We have signed contract with MDL for supply of defence systems. This system is a government-to-government joint development between DRDO and IAI Israel in which BEL is also one of the partners.
    The Economic Times

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