Maintain Revenues stood at INR16.7b, down 21% YoY and expect the revenue shortfall to be recouped in the next quarter as the company accomplished balanced ventilator order delivery as well as start ramping up the LRSAM and IACCS orders. Adj. PAT was down 74% YoY to BHEs order book stood at INR538b at end-1QFY21. BHE has secured orders worth INR34.2b in 1QFY21 (up 72% YoY), on the back of large orders acquired for Ventilators (INR12bn), Advanced Torpedo Defense systems and Smart City projects. We have increased our TP from INR108 to INR116 (14x FY22E EPS, below its long-term trading multiple BHE is well positioned to benefit from rising defense expenditure, supported by (a) strong manufacturing base and execution track record, (b) its relationship with defense and government agencies, (c) strategic collaboration with foreign technology partners for new product development, (d) in-house R&D; capabilities (R&D; spend at > 9.0% of revenues), and (e) an increased focus on exports to friendly countries.