Bharat Electronics’ FY21E Revenue Guidance At Risk: ICICI Securities  
Attendees speak at the Bharat Electronics Ltd. Remote Controlled Weapon Station display. (Photographer: Dhiraj Singh/Bloomberg)

Bharat Electronics’ FY21E Revenue Guidance At Risk: ICICI Securities  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Bharat Electronics Ltd.’s lower than expected execution in Q3 FY21 (1.1% YoY standalone revenue growth) will test FY21E revenue guidance.

Higher than expected margin performance (360 basis points QoQ increase in gross margins) allowed standalone Ebitda to increase 24.1% YoY.

Core nine month FY21 Ebitda margins (excluding other operating income) also witnessed approximately 110 basis points increase YoY.

Ebitda margin guidance of 20 plus/down 1%, even without any favourable policy review of cost-plus margins in nominated orders, looks achievable.

Strategy to diversify revenue streams away from a constrained domestic defence budget will be key to achieve double-digit revenue growth.

Click on the attachment to read the full report:

ICICI Securities BEL Q3FY21 Results Update.pdf

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