Bharat Electronics (500049) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 delivered record performance: turnover rose 29% to Rs.25,080.2 million, production increased 25%, exports grew 56.66%, and standalone PAT rose 31% to Rs.2,606.1 million.

• Order book was Rs.69,440 million as of 1 April 2003, up over 68% YoY; management expected FY 2003-04 turnover growth of 15% with stable margins.

Financial highlights

• Standalone gross turnover was Rs.25,080.2 million vs Rs.19,419.9 million; value of production was Rs.25,363.9 million vs Rs.20,299.8 million.

• Standalone PBT was Rs.3,861.6 million vs Rs.2,847.3 million; PAT was Rs.2,606.1 million vs Rs.1,996.8 million.

• Consolidated PAT after minority interest was Rs.2,816.2 million; consolidated EPS was Rs.35.20 vs standalone EPS of Rs.32.58.

• Exports were Rs.481.19 million, up 56.66%; direct exports were Rs.380.19 million and deemed exports Rs.101.00 million.

• Operating cash flow was Rs.2,362.0 million; cash and cash equivalents increased Rs.918.7 million to Rs.6,774.7 million.

Outlook and guidance

• FY 2003-04 turnover was expected to grow 15% over FY 2002-03, with margins expected to remain stable.

• Export orders were described as strong, with expectations for improved export performance in FY 2003-04; the subsidiary also had good orders on hand.