As per Crisil Ratings report, operating margins are likely to expand by 50-60 basis points due to sustained revenue growth, economies of scale and better-fixed cost absorption, and remain stable over the medium term, supported by value addition clauses in contracts. should remain. ,
While public sector undertakings (PSUs) dominate the Indian defense industry, the revenue share of private companies is increasing.
This is because liberalization in defense equipment manufacturing and increased transparency in bidding guidelines have helped private entities win more orders in the domestic and foreign markets.
According to Jayashree Nandakumar, Director, CRISIL Ratings, operating income from the order book is expected to grow by about 4.5 times to Rs 50,000-51,000 crore in FY2025 from 3.5 times in FY2023, which will lead to revenue growth.
The report further noted that gross current assets may further increase from already high levels of 450-500 days on average, driven by large inventory and receivables of 230 and 120 days respectively.
Sajesh KV said, “Players are likely to incur capital expenditure (capex) of Rs 650-700 crore this financial year to expand their existing capacities by 12-14 per cent and an additional Rs 600-700 crore to meet incremental working capital expenditure. Rs 700 crore will be required." Associate Director, CRISIL Ratings.
While public sector undertakings (PSUs) dominate the Indian defense industry, the revenue share of private companies is increasing.
This is because liberalization in defense equipment manufacturing and increased transparency in bidding guidelines have helped private entities win more orders in the domestic and foreign markets.
According to Jayashree Nandakumar, Director, CRISIL Ratings, operating income from the order book is expected to grow by about 4.5 times to Rs 50,000-51,000 crore in FY2025 from 3.5 times in FY2023, which will lead to revenue growth.
The report further noted that gross current assets may further increase from already high levels of 450-500 days on average, driven by large inventory and receivables of 230 and 120 days respectively.
Sajesh KV said, “Players are likely to incur capital expenditure (capex) of Rs 650-700 crore this financial year to expand their existing capacities by 12-14 per cent and an additional Rs 600-700 crore to meet incremental working capital expenditure. Rs 700 crore will be required." Associate Director, CRISIL Ratings.
