Q1 Results: Bharat Electronics’ Profit Rises On Lower Other Expenses

Bharat Electronics Ltd.’s profit rose in the quarter ended June on lower other expenses.

The defence electronics equipment maker expects to maintain a double-digit revenue growth of 13-15 percent in 2019-20, Chairman and Managing Director MV Gowtama told BloombergQuint in a post-earnings conversation. The company’s total revenue, he said, is expected to breach the Rs 13,000-crore mark this fiscal.

Bharat Electronics reported a 12 percent increase in Q1 profit at Rs 210 crore as margin rose.

Gowtama, however, is a “little conservative” on margin. He expects operating margin to be in the range of 17-19 percent during the year.

Bharat Electronics Q1 Results 2019-20: Key Highlights (YoY)

• Revenue down 0.4 percent at Rs 2,124 crore.
• Net profit rose 12 percent to Rs 210 crore.
• Ebitda increased 11 percent to Rs 354 crore.
• Margin expanded 180 basis points to 16.7 percent.

Key Highlights Of Post-Earnings Conversation

• Profitability maintained on traditional businesses.
• Order book to liquidate in four years or more.
• Decision on Aakash missile expected to come very soon.
• Little pressure on working capital from new tenders.

Watch the full interview here: