Bharat Electronics - Q1 Miss Doesn’t Alter Medium, Long Term Prospects: ICICI Securities
An Indian Army soldier climbs down from a Schilka air defence weapon system, manufactured by Bharat Electronics Ltd. (Photographer: Dhiraj Singh/Bloomberg)

Bharat Electronics - Q1 Miss Doesn’t Alter Medium, Long Term Prospects: ICICI Securities

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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:

ICICI Securities Bharat Electronics Q1FY22 Results Update.pdf


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