Motilal Oswal: Bharat Electronics’ Earnings Above Expectation; Order Inflows Remain Strong   
Attendees speak at the Bharat Electronics Ltd. Remote Controlled Weapon Station display during the Aero India air show (Photographer: Dhiraj Singh/Bloomberg)

Motilal Oswal: Bharat Electronics’ Earnings Above Expectation; Order Inflows Remain Strong   

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Motilal Oswal Report

Bharat Electronics Ltd.’s Q1 FY21 earnings were 28% higher than expectations due to the margin surprise.

While revenue fell short of our expectation by 10%, Ebitda margin came in at 8.8% (versus estimate 6.9%). Thus, Ebitda/net profit was 16%/28% above estimates.

Ebitda margin depends on the sales mix between deliverables. Hence, it tends to be volatile on a quarterly basis. Bharat Electronics current order book is strong at Rs 538 billion, with an order book/revenue ratio of 4.3 times

Order inflows were robust, up 72% YoY to Rs 34.2 billion. Major orders received during the quarter were for Ventilators, Advanced Torpedo Defense systems and Smart City projects.

Click on the attachment to read the full report:

Motilal Oswal Bharat Electronics Q1FY21 Result Update.pdf

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