Bharat Electronics Ltd. expects double-digit revenue growth in the current financial year aided by strong order inflow.
Orders for Akash squadrons and Long Range Surface-to-Air Missile (LRSAM) systems are likely to be signed during this year, MV Gowtama, chairman and managing director of the defence electronics equipment maker, told BloombergQuint in an interview.
BEL’s executable orders stood around Rs 10,000 crore during last financial year as compared with Rs 13,000-16,000 crore worth of orders that the company was expecting, he added.
Net profit fell more than 29 percent to Rs 558.7 for the quarter ended March. It surpassed the Bloomberg consensus estimate of Rs 541 crore. Revenue declined 16 percent to Rs 3,428 crore, short of the estimated Rs 3,451.7 crore.
Here are the more highlights from the interview.
- Third wage revision for officers had an impact of over Rs 200 crore additional expenditure in FY18.
- Had made provisions for one time gratuity increase from Rs 10 lakh to Rs 20 lakh as decided by Government of India.
- Had lower interest income and additional income this year.
- Will be able to maintain 19 percent Ebidta margins in FY19.
- Investments in R&D to be sustained between 9-10 percent.
Shares of the company fell 4 percent to Rs 114.8 on the BSE as of 2:44 pm.