Bharat Electronics (500049) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 turnover reached INR 4,105 crore, up 19.1% year-over-year, with profit after tax at INR 776.14 crore, up 46.21% from last year.

• Profit before tax for Q1 FY25 was INR 1,037 crore, a 47.4% increase year-over-year.

• Order book as of July 2024 stands at INR 76,705 crore, indicating strong future revenue visibility.

• Earnings per share rose to INR 1.06 (standalone) and INR 1.08 (consolidated) from INR 0.73 and INR 0.74 year-over-year.

Financial highlights

• EBITDA margin improved to 22.82% from 19.28% year-over-year.

• Gross margin for the quarter was 41%-42%.

• Other expenses grew by 30% year-over-year, mainly due to increased provisions for LD and doubtful debts, which rose to INR 132 crore from INR 54 crore last year.

• Interest income was the main contributor to other income.

• Standalone and consolidated revenues for Q1 FY25 were INR 4,19,877 lakh and INR 4,24,357 lakh, respectively.

Outlook and guidance

• Revenue growth guidance for FY25 maintained at 15% year-over-year.

• EBITDA margin guidance remains at 23%-25%, and gross margin at 40%-42%.

• Order inflow guidance for FY25 is INR 25,000 crore, with similar expectations for next year, excluding QRSAM.

• If QRSAM order is received, order inflow could reach INR 50,000 crore next year.

• Strong order book supports robust outlook for upcoming quarters.