Bharat Electronics (500049) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 turnover reached a record Rs.27,985.9 million, up 11.59% YoY; PBT rose 21.5% to Rs.4,690.2 million and PAT to Rs.3,161.0 million.

• Indigenous product sales were 63% of total sales; the annual MoU performance was rated “Excellent” for the sixth consecutive year.

• Orders on hand stood at Rs.67,398.9 million on 1 April 2004, versus Rs.69,440 million a year earlier.

Financial highlights

• Value of production rose 10.7% to Rs.28,078.3 million; gross turnover was Rs.27,985.9 million versus Rs.25,080.2 million in FY 2002-03.

• PAT was Rs.3,161.0 million versus Rs.2,606.1 million; reported EPS increased to Rs.39.51 from Rs.32.58.

• PBT was Rs.4,690.2 million; profit for the year after prior-period adjustments was Rs.4,580.8 million.

• Reported sales and services revenue included Rs.561.3 million from long-term contracts and Rs.273.3 million from services.

Outlook and guidance

• FY 2004-05 turnover was expected to grow ~15% over FY 2003-04, with margins expected to remain stable.

• FY 2004-05 export sales target was US$13.82 million, compared with FY 2003-04 export sales of US$9.08 million; large orders were expected from Africa and SAARC markets.

• A 10 MW multicrystalline solar-cell plant was scheduled to begin production in FY 2004-05, alongside the existing 2 MW monocrystalline plant.