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Motilal Oswal Report
Bharat Electronics Ltd.’s Q1 FY21 earnings were 28% higher than expectations due to the margin surprise.
While revenue fell short of our expectation by 10%, Ebitda margin came in at 8.8% (versus estimate 6.9%). Thus, Ebitda/net profit was 16%/28% above estimates.
Ebitda margin depends on the sales mix between deliverables. Hence, it tends to be volatile on a quarterly basis. Bharat Electronics current order book is strong at Rs 538 billion, with an order book/revenue ratio of 4.3 times
Order inflows were robust, up 72% YoY to Rs 34.2 billion. Major orders received during the quarter were for Ventilators, Advanced Torpedo Defense systems and Smart City projects.
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