Analyst Concall
Bharat Electronics eyeing $200 mln of export orders in FY25
This story was originally published at 18:54 IST on 28 October 2024
Register to read our real-time news.Informist, Monday, Oct. 28, 2024
Please click here to read all liners published on this story
--Bharat Electronics: Aim export to be 10% of total revenue going forward
--CONTEXT: Bharat Electronics mgmt comments in post-earnings conference call
--Bharat Electronics: Presently chasing $500 mln of export order
--Bharat Electronics: Aiming 15% YoY growth in revenues FY25
--Bharat Electronics: Aim to generate 15% revenue from non-defence ops FY25
--Bharat Electronics: Expect to get $200 mln of new export orders FY25
--Bharat Electronics: R&D expenses seen over INR 13 bln FY25
--Bharat Electronics: FY25 capex seen at over INR 7 bln
--Bharat Electronics: FY25 EBITDA margin seen at around 22-25%
By Narayana Krishna and Ayushman Mishra
HYDERABAD/MUMBAI – Public sector defence electronics and software services company Bharat Electronics Ltd on Monday said the company is slowly increasing its export order book with the aim of getting 10% of its total revenue from exports going forward.
In a post-earnings conference call Monday, the company's management said Bharat Electronics is currently chasing $500 mln worth of new export orders and expects to win at least $200 million worth of export orders in the current financial year ending March 2025.
The company reiterated that it will achieve 15% on-year revenue growth for 2024-25 (Apr-Mar). It reported an 17.03% on-year revenue growth during Apr-Sept.
For Jul-Sept, Bharat Electronics reported a net profit of INR 10.91 billion, up 34.3% on year, while its revenues rose 14.8% 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 it maintained net profit growth 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.
The company is working to improve the export orders every year and progressing well, the management said. Currently, several large export orders are in the pipeline, while some in Asian countries and some from Brazil and Egypt are already being executed, it added.
Besides exports, the company is targeting to achieve fresh orders worth over INR 250 billion in FY25. The management said it will book more orders than what it had aimed for the year. For the current year, the company is aiming to achieve 15% of its revenue from non-defence sector operations, while 85% would come from defence orders, the management said. The order book of the company as of Oct. 1 was at INR 745.95 billion.
The company said it is aiming to achieve earnings before interest, tax, depreciation and amortisation margin at 22-25% for FY25. For Jul-Sept, Bharat Electronics reported EBITDA margin of 30.29%.
As part of its growth plans, the company is aiming to spend over INR 13 billion on research and development and has earmarked a capital expenditure of INR 7 billion for FY25.
On Monday, shares of the company closed at INR 270.05 on the National Stock Exchange, down 0.84. End
US$1 = INR 84.08
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
