Bharat Dynamics (BDL) Q4 18/19 earnings summary

Executive summary

• FY19 was challenging: sales turnover ₹3,069.35 crore and production value ₹3,235.22 crore; technical issues affected performance, with most reported bottlenecks resolved by year-end.

• Operating margin improved despite lower turnover, while the ₹7,258 crore opening order book and projects in the order pipeline supported expectations for sustained growth.

Financial highlights

• Revenue from operations ₹3,069.35 crore, down 33% YoY; value of production ₹3,235.22 crore, down 30%, mainly after completion of Akash ground-support equipment orders.

• PBT ₹671.36 crore, down 13% YoY; PAT ₹422.59 crore, down 20%; operating profit ₹617 crore vs ₹677 crore.

• FY19 revenue reflects Ind AS 115 liquidated-damages adjustment of ₹148.98 crore; excluding the standard’s impact, PBT would have been ₹715.65 crore and PAT ₹452.31 crore.

• Net worth rose 16% to ₹2,268.55 crore; working capital increased 28% to ₹1,390.38 crore and capital employed increased 20% to ₹2,347.34 crore.

Outlook and guidance

• FY20 MoU net-sales target set at ₹4,200 crore; export order-execution target ₹420 crore.

• Opening order book ₹7,258 crore; heavy-weight torpedo order worth ₹1,187.82 crore, with further projects in various approval and allocation stages.

• Priorities include capacity optimization, export growth, indigenisation, DRDO co-development, seeker manufacturing infrastructure and development of Amogha-III ATGM.