Bharat Electronics (500049) Q4 14/15 earnings summary

Executive summary

• FY2014-15 turnover rose 8.43% YoY to ₹669,456.53 lakh; PAT increased 25.29% to ₹116,724.09 lakh. The order book stood at ₹2,161,699 lakh as of 1 April 2015.

• Defence contributed 87% of turnover, up from 83% in FY2013-14; indigenous products accounted for 80% of turnover.

Financial highlights

• Value of production increased 8.68% YoY to ₹665,854.35 lakh; PBT rose 24.85% to ₹146,668.67 lakh.

• Net turnover was ₹667,553.84 lakh versus ₹612,228.16 lakh in FY2013-14; other income was ₹47,795.18 lakh versus ₹42,847.44 lakh.

• Export sales reached a record US$57.85 million, up 37.7% YoY from US$42 million; export sales were 5.37% of total sales.

Outlook and guidance

• FY2015-16 turnover target: about ₹740,000 lakh, supported by the order book, orders in pipeline, capacity expansion and new test facilities.

• FY2015-16 export sales target is US$65 million; long-term goal is export sales at 10% of turnover versus 5.3% currently.

• Defence is expected to provide close to 80% of revenue, with civilian business supplying the balance; radar, missile, communications, tank electronics, EW and avionics systems are key growth areas.