Bharat Dynamics (BDL) Q4 16/17 earnings summary

Executive summary

• FY17 gross sales reached a record ₹4,886.62 crore, up 17.47% YoY, and value of production was ₹5,011 crore; sales exceeded the MoU target.

• Profitability declined despite higher sales: PBT was ₹802.81 crore and PAT ₹524.06 crore, down 5.25% and 7.23% YoY, respectively, mainly due to lower interest income.

• Order book stood at ₹11,170 crore at 31 March 2017, supported by a ₹1,650 crore ATGM order and the first major export contract for Light Weight Torpedoes.

Financial highlights

• Gross sales ₹4,886.62 crore, including ₹7.05 crore deferred revenue; value of production ₹5,011 crore, up 16.59% YoY.

• Value added was ₹1,885.77 crore, up 12.41% YoY; material consumption was ₹3,125.23 crore versus ₹2,620.30 crore.

• Other income fell to ₹299.94 crore from ₹404.57 crore, including bank-deposit interest of ₹189.18 crore versus ₹301.16 crore.

• Employee benefits expense rose to ₹448.39 crore from ₹326.23 crore; FY17 included higher salaries and contributions to employee funds.

Outlook and guidance

• FY18 MoU net sales target set at ₹5,300 crore; growth expectations were supported by the order book and proposed exports.

• Delivery commitments for major SAM and ATGM projects will keep production lines busy, with capacity expansion and new facilities planned to support execution.

• New projects were in the pipeline through DRDO co-development; lands at Ibrahimpatnam and Amravati were earmarked for future projects.

• Export development focused on friendly nations and opportunities from offsets, with overseas customer engagement and a new Delhi marketing office.