Captains Speak     

Published: September 30, 2024
Updated: September 30, 2024

Bharat Electronics

Set for outer space plunge

Navratna defence PSU Bharat Electronics is all set to enter the space sector. The company has signed a teaming agreement with Canada-based Reliasat to collaborate in the space domain. The partnerships leverage both companies' expertise in developing advanced space products.

BUMPER ORDERS

Reviewing the performance of Bharat Electronics during the quarter ended June 30, 2024, Mr Jain said the order book as on July 1, 2024 stood at Rs 76,705 crore. The order intake for Q1FY25 is Rs 4,803 crore and as on July 12, 2024 stands at Rs 5,225 crore. The company has maintained the FY25 guidance given at the start of the year; i.e., 15% growth, an EBITDA margin of 23-25%, and an order intake of Rs 25,000 crore.

Major orders received so far in the current fiscal include a project for supply and installation of an advanced, indigenously designed and developed, sighting and fire control system (FCS) for the upgrade of the BMP 2/2K tanks of the Indian army, along with a comprehensive engineering support package, worth about Rs 3,172 crore; Rs 481-crore orders for doppler weather radar and classroom jammers; Rs 192-crore orders for communication equipment, encryptors and fire control systems, and an export order worth 25.75 million euros (Rs 230 crore) from Thales Reliance Defence Systems. According to Mr Jain, in the current fiscal the company expects orders for ADFRS, EWS B17, security and surveillance systems for the army, mountain radar and MRH radar. The EWS system is to be finalized, while a Quick Reaction Surfaceto-Air Missile (QRSAM) order is expected next fiscal. The company expects the QRSAM order to be more than Rs 25,000 crore, based on the final configuration and number of missiles.

Q1 SALES UP

Referring to the company's financial performance, Mr Jain said consolidated net sales (including other operating income) for the quarter ended June 2024 increased 20.11% to Rs 4,243.57 crore. The operating profit margin jumped from 19.04% to 22.34%, leading to a 40.99% rise in operating profit to Rs 948.20 crore. Raw material cost as a percentage of total sales (net of stock adjustments) increased from 52.70% to 56.16%. The cost of purchase of finished goods fell from 2.80% to 1.47%.

Employee cost decreased from 18.13% to 14.64%, while other expenses fell from 6.97% to 6.89%. Other income rose 45.18% to Rs 203.58 crore. PBIDT rose 41.72% to Rs 1,151.78 crore. Provision for interest rose 10.28% to Rs 1.18 crore. PBDT rose 41.76% to Rs 1,150.6 crore. Provision for depreciation fell 1.16% to Rs 107.68 crore. Profit before tax grew 48.41% to Rs 1,042.92 crore. The share of profit/loss was 2.90% higher at Rs 10.29 crore. Provision for tax was an expense of Rs 261.93 crore, compared to Rs 174.13 crore. The effective tax rate was 24.87% compared to 24.43%.

Minority interest increased 133.33% to Rs 0.28 crore. Net profit attributable to owners of the company increased 46.89% to Rs 791.00 crore.