Bharat Dynamics (BDL) Q4 15/16 earnings summary

Executive summary

• FY2015-16 sales reached a record ₹4,163.58 crore, up 48.72% YoY; value of production rose 55.23% to ₹4,299.84 crore.

• Profit before tax increased 38.44% to ₹850.26 crore and profit after tax rose 34.56% to ₹563.24 crore.

• Year-end order book stood at ₹13,721 crore, supporting production visibility, while major SAM and ATGM delivery commitments remain challenging.

Financial highlights

• Value added rose 83.57% YoY to ₹1,679.54 crore; sales exceeded the MoU target.

• Gross block increased 25.05% to ₹1,175.55 crore; net block rose 48.09% to ₹583.30 crore.

• Net worth grew 7.76% to ₹1,652.23 crore; working capital declined 27.13% to ₹1,996.94 crore and capital employed fell 17.67% to ₹2,580.24 crore.

• Adjusted for the share buyback, paid-up capital was ₹97.75 crore at year-end; basic and diluted EPS was ₹4,898 versus ₹3,640 in FY2014-15.

• Cash from operating activities was an outflow of ₹22,025.42 lakh; cash and cash equivalents closed at ₹326,763.72 lakh.

Outlook and guidance

• FY2016-17 MoU sales target set at ₹4,400 crore, excluding duties and taxes.

• The ₹13,721 crore order book as of 31 Mar 2016 is expected to keep production lines busy; anticipated orders and armed-forces modernization underpin growth plans.

• Capacity expansion, new multi-location manufacturing facilities, infrastructure upgrades, a broader vendor base and stronger project management planned to meet existing and pipeline commitments.

• A bulk indent for an ATGM was expected in FY2016-17 following completion of a prior supply; new project opportunities remained at various stages of customer consideration.