Bharat Dynamics (BDL) Q4 10/11 earnings summary

Executive summary

• Record FY2010-11 sales of ₹939.10 crore, up 50% YoY; profit after tax rose 53% to ₹51.70 crore.

• A ₹14,180 crore Akash surface-to-air missile contract for the Indian Army and an order book of ~₹20,000 crore support planned growth.

Financial highlights

• Sales ₹939.10 crore vs ₹627.23 crore YoY; value of production ₹910.92 crore, up 44%; value added ₹330.78 crore, up 71%.

• PBT ₹79.17 crore, up 56% YoY; PAT ₹51.70 crore, up 53% YoY.

• Other income was ₹143.75 crore vs ₹150.42 crore; it included ₹29.9955 crore of provisions no longer required.

Outlook and guidance

• FY2011-12 sales target exceeds ₹1,300 crore, representing targeted growth of 45% over FY2010-11 actual sales.

• Order book stood at ~₹20,000 crore, with further increases expected; major delivery commitments include Akash SAM and Milan-2T, Konkurs-M and Invar ATGMs.

• Capacity expansion, production visibility systems and full ERP integration are intended to support higher output and delivery execution.