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Informist, Thursday, Jan. 30, 2025

 

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--Bharat Electronics Oct-Dec net profit 13.16 bln
--Analysts saw Bharat Electronics Oct-Dec net profit INR 9.57 bln  
--Bharat Electronics Oct-Dec net profit INR 13.16 bln vs INR 8.93 bln yr ago
--Bharat Electronics Oct-Dec revenue INR 57.56 bln vs INR 41.37 bln yr ago
--Bharat Electronics Apr-Dec PAT INR 31.83 bln vs INR 22.36 bln year ago 
--Bharat Electronics Apr-Dec sales INR 145.38 bln vs INR 116.41 bln yr ago 
--Bharat Electronics order book INR 711 bln as on Jan 1 

 

By Akshay V. Johnson

 

MUMBAI – Bharat Electronics Ltd. reported higher-than-expected net profit and revenue for the December quarter, aided by continued progress in execution, strong order book, and continued government focus on indigenisation of defence equipment. This marks the eighth consecutive quarter of double-digit growth in net profit and the fourth consecutive quarter of double-digit growth in revenue. The company's growth in revenue was the highest in 10 quarters. The shares of the company, which were trading higher before the announcement of the results, rose 3.4?ter the announcement and traded at INR 278.10 on the National Stock Exchange at 1423 IST.

 

The Bengaluru-based defence electronics and information technology services major reported a net profit of INR 13.16 billion for the December quarter, up 47% from INR 8.93 billion in the year-ago quarter. Analysts had estimated the company to report a net profit of INR 9.57 billion. The company's revenue for the December quarter was INR 57.56 billion, up 39% from INR 41.37 billion a year ago. Analysts had estimated the company's revenue at INR 48.99 billion. Sequentially, the company's net profit was up 21% and the revenues 26%. The increase in the top line and the bottom line was achieved despite an 8% on-year fall in other income to INR 2.05 billion.

 

Bharat Electronics, a Navratna public sector undertaking, is under the Ministry of Defence and manufactures electronic products and systems for the Army, the Navy, and the Air Force. The company has also diversified into homeland security solutions, helping build smart cities, e-governance solutions, and other electronics and software services.

 

The company reported total expenses of INR 42.07 billion for the December quarter, up 32% on year. Cost of materials consumed, which accounted for 76% of the company's total expenses, was INR 31.91 billion for the December quarter, up 46% on year. The company's other expenses were up 35% on year at INR 4.45 billion while employee benefit expenses rose 7.4% on year to INR 6.65 billion. For Apr-Dec, the company's net profit was INR 31.83 billion, up 42% on year, while the revenues were up 25% on year to INR 145.38 billion.

 

Bharat Electronics' earnings before interest, tax, depreciation and amortisation for the December quarter were INR 16.53 billion, up from INR 10.49 billion, as calculated from the company's press release. Analysts had estimated the company to report an EBITDA of INR 12.14 billion.

 

During the quarter, the Defence Acquisition Council approved five capital acquisition proposals worth INR 217.72 billion. The panel approved the acquisition of vessels, an electronic warfare suite, and advanced light helicopters. Bharat Electronics is also likely to benefit the most from the possible award of the electronic warfare suite package for Sukhoi-30MKI aircraft and the trickle-down benefit of 20–30% of the value of shipbuilding orders, ICICI Securities had said in a research report prior to the earnings announcement. Bharat Electronics is one of the largest beneficiaries of the government's recent decision to procure defence equipment. As of Jan. 1, the company's order book position was at INR 711 billion.

 

Bharat Electronics has scheduled an investor call Friday at 1600 IST. Analysts will look for the management's commentary on order book execution status, especially its export book order, and the full year outlook. In the post-earnings analyst conference call after the September quarter results, the company had said it aimed at getting 10% of its total revenues from exports. The management had said it expects to win at least $200 million worth of export orders in the current financial year.  End

 

US$1 = INR 86.60

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

 

Edited by Akul Nishant Akhoury

 

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