Bharat Dynamics (BDL) Q4 17/18 earnings summary

Executive summary

• FY18 sales turnover reached a record ₹4,576 crore, with value of production of ₹4,630 crore, despite technical challenges; order book stood at ₹8,889 crore on 1 Apr 2018.

• FY18 included a successful IPO and listing on BSE and NSE on 23 Mar 2018; the offer was oversubscribed 1.3 times.

Financial highlights

• Gross revenue from operations was ₹4,588 crore, down 6% YoY; net revenue was ₹4,576 crore, up 0.89% YoY.

• Profit before tax was ₹774 crore, down 3.61% YoY; profit after tax rose 0.78% to ₹528 crore.

• Operating profit improved to ₹682 crore from ₹601 crore; lower interest income of ₹82 crore versus ₹189 crore drove the PBT decline.

• Value of production was ₹4,630 crore, down 0.65% YoY; value added increased 12.23% to ₹1,715 crore.

Outlook and guidance

• FY19 MoU net sales target was ₹4,600 crore; management expected to pursue growth supported by the order book and anticipated project awards.

• Of the ₹8,889 crore order book at 1 Apr 2018, only ₹1,800 crore was slated for production during FY20, a stated near-term concern.

• New manufacturing facilities at Ibrahimpatnam and Amravati, plus capacity upgrades, are intended to meet current and pipeline demand.