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Informist, Friday, Oct. 25, 2024

 

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--Jul-Sept net profit INR 10.91 bln
--Analysts saw Bharat Electronics Jul-Sept net profit INR 8.62 bln
--Jul-Sept net profit INR 10.91 bln vs INR 8.12 bln
--Jul-Sept revenue INR 45.83 bln vs INR 39.93 bln yr ago
--Apr-Sept PAT INR 18.67 bln vs INR 13.43 bln year ago
--Apr-Sept revenue INR 87.82 bln vs INR 75.04 bln yr ago
--Order book at INR 745.95 bln as on Oct 1

 

By Narayana Krishna

HYDERABAD – Bharat Electronics Ltd. reported a better-than-expected net profit for the quarter ended September, helped by continued progress in execution and a robust order book. However, the public sector company missed the revenue estimates.

 

The Bengaluru-based defense electronics and information technology services major on Friday reported a net profit of INR 10.91 billion, up 34.3% on year, while its revenues rose 14.8% on year to INR 45.83 billion. Sequentially, the company’s net profit was up 40.6% and revenue rose 9.2%.

 

The company's revenue growth slowed compared to the last two quarters, while net profit growth maintained at high levels compared to the last two quarters. Analysts had estimated the company's net profit at INR 8.6 billion on revenue of INR 47.6 billion.

 

Bharat Electronics, a Navratna public sector undertaking, is under the Ministry of Defense, and it manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.

 

The company has also diversified into various areas such as homeland security solutions, smart cities, e-governance solutions, and several other electronics and software services. As of Sept. 30, the company order book was at INR 745.95 billion. Bharat Electronics is one of the largest beneficiaries of the government's recent decision to procure defence equipment. 

 

Bharat Electronics said, in view of the ongoing conflicts in Israel, the company has analysed the existing contracts and arrangements with the companies based in Israel and there is no material financial impact as on date of the results.

 

Bharat Electronics has ties with several defence manufacturing companies in Israel and collaborates with some companies on technology, besides supply pacts. In September, the company received the government's nod to set up a joint venture with Israel Aerospace Industries Ltd.

 

Bharat Electronics' earnings before interest, tax, depreciation and amortisation or EBITDA margin for Jul-Sept was at 30.29%, expanded by 514 basis points, as per the calculation done by Informist based on the company's filing with stock exchanges. Margins are way above the company’s target of 25%. The EBITDA for the quarter is at INR 13.9 billion against the estimates of INR 10.8 billion.

 

The company's total expenditure for the quarter rose 6.7% on year, but declined 2% sequentially to INR 32.99 billion. The company's input costs rose by 25.7% on year, but declined 4% sequentially to INR 24.2 billion. The other income for the quarter declined 2% on year and 17% on quarter to INR 1.7 billion.

 

While other expenses were up 15% on year and 29.8% quarter-on-quarter at INR 4 billion, employee expenses were up 9.5% on year, but fell 1.6% sequentially to INR 6.5 billion.

 

For Apr-Sept, Bharat Electronics reported a 39% year-on-year rise in its net profit to INR 18.7 billion, while its revenue for the period was up 17% on year to INR 87.8 billion.

 

While analysts are looking for the company's commentary on order book execution status and full year outlook, Bharat Electronics scheduled an investor call for Monday.

 

At 1526 IST, shares of Bharat Electronics traded at INR 274.70 on the National Stock Exchange, down 1.2% from its previous close.  End

 

US$1 = INR 84.07

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Manisha Baxla

 

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