Bharat Dynamics (BDL) Q4 11/12 earnings summary

Executive summary

• FY12 sales turnover ₹959.12 crore, up 2% YoY; value of production ₹992.94 crore, up 9%.

• PBT rose to ₹348.19 crore from ₹79.17 crore and PAT to ₹234.96 crore from ₹51.70 crore; gains included unusually high interest income and other income.

• Confirmed order book stood at ~₹19,000 crore at 31 Mar 2012, with additional contracts expected after concluded negotiations.

Financial highlights

• Value added reached ₹359.41 crore, up 9% YoY; value added per employee was ₹12.53 lakh, up 10%.

• Gross block increased 24% to ₹604.24 crore; net block rose 50% to ₹211.67 crore, working capital 24% to ₹458.97 crore and net worth 33% to ₹732.19 crore.

• Other income was ₹462.72 crore versus ₹141.70 crore, including ₹402.82 crore interest on short-term deposits, ₹32.88 crore provisions written back and ₹21.82 crore liquidated damages recovered from suppliers.

• EPS increased to ₹2,043.12 from ₹449.59; reported net profit was ₹234.96 crore.

Outlook and guidance

• Order book of ~₹19,000 crore was described as healthy; negotiations on further contracts were concluded, with award expected to add to the backlog.

• Modernization and ramp-up of ATGM and other production capacity were ongoing; ERP implementation across divisions was planned for 2012–14.

• FY12 MOU performance was expected to receive an “Excellent” rating; FY11 rating was “Very Good.”