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Informist, Thursday, Feb. 6, 2025

By Simran Rede

MUMBAI – Bharat Dynamics Ltd. posted on-year rise in both its bottom line and top line for Oct-Dec after two consecutive quarters of contraction. The top-line growth of 38% was the fastest in 10 quarters. However, both key metrics were lower than the two estimates available with Informist. The defence company's expenses increased faster than the top line, particularly due to the surge in the cost of materials. 

For the three months ended December, the state-owned company's net profit rose 9% on year to INR 1.47 billion. Elara Securities had forecast a 33% on-year rise in its bottom line to INR 1.79 billion and Nirmal Bang Institutional Equities' projection was INR 3.94 billion. The ammunition and missile systems manufacturer's revenue grew to INR 8.32 billion from INR 6.02 billion in the same quarter the previous year. 

For Apr-Dec, the company's net profit fell 14.5% on year to INR 2.77 billion, while its revenue rose 3.5% on year to INR 15.68 billion. Its board declared an interim dividend of INR 4 per share and the record date is Feb. 14. Shares of the company rose over 2% but lost all of their gains shortly after and traded at INR 1,200, down 0.3%, on the National Stock Exchange at 1153 IST.

During the quarter, the company conducted an assessment of its customer contracts aimed at gaining exposure to the niche technology in the global defence industry. These contracts help the company to become part of the global supply chain partner of a leading defence manufacturer, it said. For these contracts, it made provisions of INR 1.35 billion.

Bharat Dynamics' total expenses of INR 7.24 billion for the quarter rose nearly 45%, faster than the company's top-line growth. This was due to a sharp rise in its cost of materials and other expenses, which more than doubled on year to INR 3.25 billion and INR 2.14 billion, respectively. However, its employee-benefit expenses fell 33% on year to INR 1.22 billion, its steepest drop in more than 27 quarters.  End

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

Edited by Akul Nishant Akhoury

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