Bharat Electronics (500049) Q4 96/97 earnings summary

Executive summary

• FY96/97 described as an excellent year: turnover rose 14.71% to Rs.1,226.24 crore, production value increased 17.24% to Rs.1,230.45 crore, and PBT reached Rs.95.67 crore.

• Around 77% of turnover came from defence supplies; indigenisation and lower materials consumption supported profitability.

Financial highlights

• PAT was Rs.51.19 crore versus Rs.20.70 crore in FY95/96; FY96/97 PBT included Rs.8.22 crore for pay arrears, compared with Rs.38.78 crore of arrears in the prior year.

• Sales including services were Rs.1,226.24 crore; value of production was Rs.1,230.45 crore, up 17.24% YoY.

• Materials consumption fell to 50.94% of production value from 52.84%; inventory declined from 164 to 144 days of production value.

Outlook and guidance

• The Rs.1809 crore year-end order book exceeded planned FY97/98 production and turnover; management expressed confidence in maintaining performance.

• FY97/98 MOU targets: turnover of Rs.1,410 crore and gross margin (PBDIT) of Rs.178.30 crore.

• Orders were short in broadcast, telecom, some defence communications and optoelectronics; management expected orders to materialise during FY97/98.