Bharat Electronics - Q1 Miss Doesn’t Alter Medium, Long Term Prospects: 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. reported lower than expected Q1 FY22, with an Ebitda of Rs 629 million (down 57% YoY).
Revenues were down 4.5% YoY, with execution expected in Q1 FY22 from Akash (three squadrons) and long-range surface-to-air missile expected in Q1 FY22.
The decline in gross margins negatively surprised partly contributed by escalating costs on account of chip shortage and partly by changing nature/scope of contracts.
We are confident that Bharat Electronics will be able to improve on its gross/Ebitda margins over the course of the year and stand true on management guidance of 20-22% Ebitda margins.
Order inflow of Rs 26 billion is also expected to pick up progressively.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.