Bharat Dynamics’ Q1 net profit falls 80% y-o-y; stock slips ~15%

12 Aug 2024 , 11:19 AM

Bharat Dynamics Ltd.’s shares plunged up to 15% on Monday after the company’s net profit decreased by more than 80% in the June quarter compared to the same period last year.

At around 10.44 AM, Bharat Dynamics was trading 6.95% lower at ₹1,334.35 per piece, against the previous close of ₹1,434.05 on NSE. The counter plunged as much as 15% to ₹1,222.35.

Bharat Dynamics’ net profit dropped by 83% to ₹7.2 Crore in the June quarter, compared to ₹42 Crore the previous corresponding period.

Despite the EBITDA loss, Bharat Dynamics maintained profitability for the quarter, boosted by increased interest income from a strong cash balance.

Bharat Dynamics also stated that it had no large order wins in the June quarter, and that the ongoing Russia-Ukraine War, as well as the Middle-East crisis, continued to impair the supply chain, resulting in a delay in the arrival of crucial components, affecting the company’s quarterly performance.

The management thinks that these difficulties will be rectified by the end of the September quarter of fiscal year 2025.

The analysts also predict Bharat Dynamics to generate good operational performance and revenue growth in fiscal year 2025, driven by the easing of supply problems and several actions taken to address alternate supply chains.

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