Bharat Dynamics (BDL) Q4 14/15 earnings summary

Executive summary

• FY15 sales reached a record ₹2,799.68 crore, up 57.29% YoY; value of production rose 53.51% to ₹2,770.05 crore.

• Reported PBT increased 20.76% to ₹614.19 crore and PAT rose 21.15% to ₹418.57 crore.

• Order book stood at ₹16,357 crore at 31 Mar 2015, supporting production activity in coming years.

Financial highlights

• Revenue from operations was ₹2,799.68 crore versus ₹1,779.89 crore in FY14; total revenue including other income was ₹3,280.71 crore.

• Materials consumed were ₹1,855.10 crore; employee benefit expense was ₹313.07 crore and other expenses were ₹235.27 crore.

• Value added increased 58.16% YoY to ₹914.95 crore; value added per employee rose 62.28% to ₹28.74 lakh.

• Dividend payment was ₹83.71 crore, including ₹48.90 crore interim dividend; ₹318 crore was recommended for transfer to General Reserve.

Outlook and guidance

• The ₹16,357 crore order book was expected to keep production lines busy; capacity, vendor base, project management and multi-site infrastructure were slated for expansion.

• QRSAM production-agency identification was secured; MRSAM, LRSAM, VSHORADS and SPIKE were in the pipeline, while VSHORAD, SRSAM and advanced 3rd-generation ATGM projects awaited approvals or customer consideration.

• Fresh indents for Milan 2T and Konkurs-M were under customer consideration; supply of Konkurs-M against existing indent was expected to conclude by Mar 2016.

• Modernization included robotic welding, automated conditioning, electroplating-line automation and flow forming to raise production capacity.