Half of its business still depends on Spain, compared with 20% for France’s Thales and Italy’s Leonardo.

Indra shares soared yesterday after reporting the first results from its strategic plan and confirming its 2024 targets. However, there is one piece of information that suggests the company still has a long way to go. to become the technology champion you crave: 50% of business is still created in Spain.the figure is still far from the great competitors of the Ibex 35 member.

In presenting his plan, Indra sought to equate himself with his two European “cousins”: French Thales and Italian Leonardo. Both companies have the state as shareholders and have consolidated large parts of their national defense sectors to expand overseas and become major global players. Thus, these two companies, which are much larger than Indra and serve as a mirror, generate “only” 20% of their business in their national territory, and it is this path that the Spanish company aims to follow in its new strategic plan.

For Indra, if possible, it is even more important to grow internationallysince the Spanish market is still smaller than the Italian market and much smaller than the French market, the largest defense investor on the European continent, so if it wants to reach the 6 billion in revenues planned in its new roadmap, it will have to grow abroad, where it Middle East and Europe as priority markets, and in which, in relative terms, it is growing faster than in Spain.

Business with administration

However, in the case of technology, the main revenue dependency that explains Spain’s weight on the group’s balance sheet lies not only in its important business with the Armed Forces, but also in Spain’s successful performance. Minsite, its digital division, as a contractor for technological services to the Administration.

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The digital transformation of the public sector and the arrival of European funds have strengthened this relationship in recent years. Of the 409 million euros billed by this division of the company in 2020, approximately income 708 million at the end of the year in 202373% more, with Spain playing a leading role.

While the company doesn’t specify what percentage of those revenues come from Spain, references to “key programs” with the administration are repeated in every results report. The latest was in the results presented last Monday, covering the period January-March 2024, which highlighted “positive activity in public administration in Spain.”

“Q1 2023 sales in government and healthcare grew 35%, with the Minsait vertical outperforming. Sales were thanks to the strong growth recorded in Spain (great activity with the central government and autonomous entities) and electoral business,” the company also noted.

Given the significant amount of European funds that will be distributed, and the ministry that combines digital transformation and administration, we should expect that, at least for the next two years, this hiring frenzy will continue. It is not known whether Indra will be able to keep growing at this rate

or if the Spanish peso, which tends to cut items of this type in times of economic difficulty, continues to dominate the company’s accounts.