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.
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.
Financial Results: Bharat Electronics