The Navratna PSU, Bharat Electronics, which announced good set of fourth quarter results on Saturday May 20, opens 1 percent higher in trade on Monday May 22 and surged nearly 4 percent by 11 am. Standalone revenue grew 2 percent year on year to Rs 6,460 crore led by a healthy order book execution. The gross margins expanded 636 bps to 48.2 percent, with softening commodity prices and business mix.

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Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 16 percent to Rs1,820 crore, with EBITDA margins expanding 347bps to 28.3 percent, partly impacted due to higher other expenses which jumped 46 percent.

Net profitability is 20 percent higher at Rs 1,370 crore, owing to healthy operational performance and lower effective tax rate of 23.4 percent in Q4FY23 versus 25.2 percent in Q4FY22.

For FY23, revenue grew 15 percent to Rs 17,650 crore, while the management earlier guided for Rs 18,000 crore. EBITDA grew 22 percent to Rs 4,050 crore, while EBITDA margins expanded 133bps to 22.9 percent. Net profits are 28 percent higher at Rs 3,000 crore.

For FY23, order inflows are 6 percent higher at Rs 20,200 crore, while order book stands strong at Rs 60,690 crore, up 5.4 percent. Company has recommended a final dividend of Rs 0.60 per equity share (60 percent) of Rs 1 each fully paid-up for the financial year 2022-23.

Some of the major orders acquired during the year were Himashakti, Medium Power Radar (Arudhra), Air Defence Control & Reporting System (Akashteer), Lynx U2 systems, EW Suite for MLH Upgrade, DR118 for Su-30, Weapon Locating Radar (WLR), SARANG ESM etc. Some of the major projects executed during FY 2022-23 were Long-Range Surface-to-Air Missile (LRSAM) systems, Akash Missile Systems, SATCOM Network, Command & Control Systems, various Radars, Electronic Warfare Systems, Communication equipment, Coastal Surveillance System, Electro-optic Systems, Fire Control Systems, Home Land Security Systems, Smart City projects etc.

BEL achieved export sales of around $46.5 million during FY23 against the previous year’s export of $ 33.3 million registering a growth of 40 percent. Major products exported include Transmit & Receive (TR) Modules, Radar Warning Receiver (RWR), Control Cards, Link-II Systems, Compact Multi-Purpose Advanced Stabilisation System (CoMPASS), Low Band Receivers (LBREC), Medical Electronics etc. BEL has acquired export orders worth $ 75.66 million during FY23.

The stock ended flat in trade on May 19 before the results announcement and opened the trading session on May 22 with gains of 1 percent.

First Published:May 22, 2023 9:05 AM IST