Bharat Electronics (One of the eight defence PSU's in India) has started the fiscal on disappointing note as the net profit fell by sharp 84% in Q1'FY'13 to Rs 19.33 crore. The sharp fall in net profit was on lower sales (down by 15% YoY to Rs 779.22 crore) coupled with poor performance on operating level (margins turned to -13.3% as against 4.6%). As a result, it posted operating loss of Rs 106.30 crore (as against profit of Rs 42.45 crore). However, after the 6% growth in other income to Rs 163.24 crore, PBIDT fell by 71% YoY to Rs 56.94 crore. Also, there was meager interest cost, marginal incline in depreciation and marginal decline in effective tax rate during the quarter.
- Total Revenues for the quarter were lower by 14% YoY to Rs 796.92 crore but the value of production declined by 5% to Rs 899.97 crore for the same period. This shows the significant pileup in stocks during the quarter.
- On operating front, margins turned to negative 13.3% (as against positive 4.6%) on the back of higher consumption cost (up by 960 bps YoY to 70.8%), staff cost (up by 300 bps YoY to 31.1%) and other expenses (up by 350 bps YoY to 9.6%) during the quarter. Eventually, it has posted operating loss of Rs 106.30 crore. But after the 6% growth in other income to Rs 163.24 crore, PBIDT fell by 71% YoY to Rs 56.94 crore.
- The interest cost (Rs 0.31 crore vis-à-vis Rs 0.32 crore) was meager and there was marginal 4% increase in depreciation to Rs 30.61 crore. Also, 70 bps YoY fall in effective tax rate to 25.7% during the quarter.
Standalone Yearly Performance:
Net sales grew by sluggish 3% YoY to Rs 5650.01 crore for the year ended March 2012. Also, margins fell by 750 bps YoY to 10.6% and after this there was 39% fall in operating profit to Rs 610.76 crore. However, after the sharp 113% growth in other income to Rs 585.49 crore, PBIDT declined by 7% YoY to Rs 1196.25 crore. With the meager interest cost (Rs 0.60 crore vis-à-vis Rs 0.43 crore) coupled with the marginal 1% decline in depreciation to Rs 120.80 crore, PBT fell by 7% YoY to Rs 1074.85 crore. Thanks to the sharp fall in effective tax rate (300 bps YoY to 22.8%) during the year, net profit decline restricted to 4% YoY to Rs 829.90 crore.
Other Information:
- The scrip is hovering at Rs 1131.55 at BSE, India on July 31st 2012.
- The board of directors of the Company has recommended final dividend of Rs 10.80 per share for the year 2011-12 at its meeting held on 21st June 2012, in addition to an interim dividend Rs 10 per share paid in February 2012.
Financial Results: Bharat Electronics
| 1206(03) | 1106(03) | Var (%) | 1203(12) | 1103(12) | Var (%) |
| Net Sales/ Income form operations | 779.22 | 920.66 | -15 | 5650.01 | 5469.14 | 3 |
| Other operating income | 17.70 | 10.26 | 73 | 117.63 | 123.38 | -5 |
| Total Income from operations | 796.92 | 930.92 | -14 | 5767.64 | 5592.52 | 3 |
| OPM (%) | -13.3 | 4.6 | | 10.6 | 18.0 | |
| Operating Profit | -106.30 | 42.45 | PL | 610.76 | 1009.24 | -39 |
| Other Income | 163.24 | 154.07 | 6 | 585.49 | 274.38 | 113 |
| PBIDT | 56.94 | 196.52 | -71 | 1196.25 | 1283.62 | -7 |
| Interest | 0.31 | 0.32 | -4 | 0.60 | 0.43 | 38 |
| PBDT | 56.63 | 196.20 | -71 | 1195.65 | 1283.19 | -7 |
| Depreciation | 30.61 | 29.32 | 4 | 120.80 | 122.04 | -1 |
| PBT | 26.02 | 166.88 | -84 | 1074.85 | 1161.15 | -7 |
| Tax | 6.69 | 44.07 | -85 | 244.95 | 299.68 | -18 |
| Net Profit | 19.33 | 122.80 | -84 | 829.90 | 861.47 | -4 |
| EPS (Rs)* | # | # | | 103.7 | 107.7 | |
*Paid up Equity capital of Rs 80 crore, Face Value Rs 10
# EPS is not calculated due to seasonality of the business
PL: Profit to Loss,
LP: Loss to Profit
Figures in Rs crore
Source: Capitaline Corporate Database |