Bharat Electronics net sales grew by 8% YoY to Rs 1431.61 crore for the quarter ended December 2011. However, the performance at operating level impacted badly as the margins witnessed drastic 730 bps fall YoY to 8.9% due to sharp rise in the consumption cost led to 42% fall in the operating profit to Rs 128.90 crore. While the steep rise in other income (includes Interest income, Dividend & Profit on sale of fixed assets) by 208% to Rs 141.90 crore offset the fall as the PBIDT increased by marginal 1% to Rs 270.80 crore. Interestingly, other income witnessed sharp rise consecutively for the past four quarters.
Moreover, the lower effective tax rate during the quarter bettered the growth in net profit to 2% YoY to Rs 174.65 crore.
Quarterly Performance:
Total Income from operations grew by 5% to Rs 1447.34 crore includes other operating income (down by 70%) Rs 15.73 crore for the quarter ended December 2011. However, OPM fell by whopping 730 bps YoY to 8.9% on the back of drastic rise in the consumption cost by 720 bps and increase in other expenses by 130 bps as percentage to sales and net of stock adjustments. This led to 42% fall in operating profit to Rs 128.90 crore. While the sharp 208% rise in other income to Rs 141.90 crore resulted marginal 1% growth in PBIDT to Rs 270.80 crore.
Consequently, with decline in interest cost by 84% to Rs 0.01 crore and depreciation by 1% to Rs 29.32 crore there was marginal 1% growth in PBT to Rs 241.47 crore. Further, the fall in effective tax rate by 100 bps to 27.7% bettered the growth in net profit to 2% YoY to Rs 174.65 crore.
Nine Months Performance:
Net sales grew by 7% on YoY basis to Rs 3413.23 crore for the nine months ended December 2011. However, OPM fell by sharp 590 bps YoY to 7% on the back of rise in costs across the business which resulted 43% fall in operating profit to Rs 242.01 crore. While the sharp 159% rise in other income to Rs 428.26 crore improved the performance at PBDIT level, as the growth was 14% to Rs 670.27 crore. Consequently, with 22% rise in the interest cost to Rs 0.17 crore and marginal 1% decline in the deprecation to Rs 88.03 crore there was 17% growth in PBT to Rs 582.06 crore. Thanks to the fall in the effective tax rate by 110 bps to 27.4% as the net profit bettered to 19% growth to Rs 422.46 crore.
Other Information:
- The scrip was up by 0.45% to Rs 1437.35 at BSE, India on 27th January 2012.
- The Company announced interim dividend of Rs 10 per share for the year 2011-12.
Financial Results: Bharat Electronics
| 1112(03) | 1012(03) | Var (%) | 1112(09) | 1012(09) | Var (%) | 1103(12) |
| Net Sales/ Income form operations | 1431.61 | 1321.25 | 8 | 3413.23 | 3195.14 | 7 | 5471.75 |
| Other operating income | 15.73 | 51.74 | -70 | 56.32 | 79.93 | -30 | 144.26 |
| Total Income from operations | 1447.34 | 1373.00 | 5 | 3469.55 | 3275.07 | 6 | 5616.01 |
| OPM (%) | 8.9 | 16.2 | | 7.0 | 12.9 | | 18.5 |
| Operating Profit | 128.90 | 222.77 | -42 | 242.01 | 421.96 | -43 | 1038.58 |
| Other Income | 141.90 | 46.04 | 208 | 428.26 | 165.37 | 159 | 245.05 |
| PBDIT | 270.80 | 268.82 | 1 | 670.27 | 587.32 | 14 | 1283.62 |
| Interest | 0.01 | 0.04 | -84 | 0.17 | 0.14 | 22 | 0.43 |
| PBDT | 270.79 | 268.77 | 1 | 670.09 | 587.18 | 14 | 1283.19 |
| Depreciation | 29.32 | 29.56 | -1 | 88.03 | 89.23 | -1 | 122.04 |
| PBT | 241.47 | 239.22 | 1 | 582.06 | 497.95 | 17 | 1161.15 |
| Tax | 66.82 | 68.62 | -3 | 159.60 | 141.87 | 13 | 299.68 |
| Net Profit | 174.65 | 170.60 | 2 | 422.46 | 356.08 | 19 | 861.47 |
| EPS (Rs)* | # | # | | # | # | | 107.7 |
*Paid up Equity capital of Rs 80 crore, Face Value Rs 10
#EPS is not calculated due to the Seasonality of the Business
PL: Profit to Loss, LP: Loss to Profit
Figures in Rs crore
Source: Capitaline Corporate Database |