Bharat Dynamics (BDL) Q4 13/14 earnings summary

Executive summary

• FY14 record sales of ₹1,779.89 crore, up 66% YoY; value of production reached ₹1,804.49 crore, up 54% YoY.

• Growth was supported by a ₹3,000 crore Invar ATGM contract spanning five years and an order book of ₹18,864 crore as of 1 Apr 2014.

Financial highlights

• Revenue from operations was ₹1,779.89 crore versus ₹1,074.71 crore in FY13; total revenue was ₹2,304.63 crore, including ₹530.57 crore of other income.

• PBT rose 21% to ₹508.59 crore; PAT increased 20% to ₹345.51 crore.

• Value added grew 46% to ₹578.48 crore; working capital rose 32% to ₹811.68 crore and net worth increased 28% to ₹1,217.75 crore.

Outlook and guidance

• Order book was ~₹19,000 crore at 31 Mar 2014; delivery commitments for major ATGMs and SAMs create a demanding execution schedule.

• MRSAM, LRSAM, SRSAM and VISHORAD contracts were expected; new Milan 2T indent was anticipated in FY15.

• ERP implementation was targeted by Mar 2015; plans included multi-location manufacturing lines, expanded vendor capacity and stronger project management.