Bharat Electronics (500049) Q4 99/00 earnings summary

Executive summary

• FY2000 sales reached Rs.14,941.5 million, up 24.63% YoY; production value rose 26.84% to Rs.15,432.9 million. PBT more than doubled to Rs.1,664.3 million and PAT rose to Rs.1,079.3 million.

• Profitability improved with higher sales and production, better resource use and material yields, indigenisation of costly sub-assemblies, and sharply lower interest expense.

Financial highlights

• Sales and services were Rs.14,941.5 million versus Rs.11,988.7 million; value of production was Rs.15,432.9 million versus Rs.12,167.0 million.

• PBT was Rs.1,664.3 million versus Rs.702.1 million; PAT was Rs.1,079.3 million versus Rs.536.3 million. Tax provision rose to Rs.585.0 million from Rs.165.8 million.

• Operating results included a Rs.327 million VRS compensation charge, versus Rs.53.5 million in FY1999; the charge was included in employee costs.

• Non-defence supplies rose to Rs.3,710 million from Rs.3,090 million; direct exports fell to Rs.260 million from Rs.311 million.

Outlook and guidance

• FY2001 MoU turnover target was Rs.16,000 million; the healthy order book and execution pipeline supported confidence in achieving the target.

• Order book at 1 April 2000 was Rs.27,110 million versus Rs.19,260 million a year earlier; FY2000 orders received were a record Rs.21,480 million, including around Rs.13,500 million executable orders.

• A further Rs.2,500 million in orders was anticipated from DoT, All India Radio, Doordarshan and other major customers.

• BE-Delft was expected to turn around in FY2001 if anticipated orders materialised; BEL Multitone planned diversification in response to a falling pager market.